ChainCatcher report, according to Cointelegraph, the U.S. January Producer Price Index (PPI) data exceeded expectations, rising 0.5% month-over-month (expected 0.3%), while core PPI increased 0.8% month-over-month (expected 0.3%). As a result, Bitcoin prices came under pressure, falling nearly 3% intraday and currently trading around $66,178. Market expectations for a Fed rate cut in March have dropped below 4%. Meanwhile, safe-haven assets performed strongly, with gold breaking above $5,200 per ounce, reaching its highest level since late January; silver rebounded to $92, its highest level since January 30. Traders and analysts have warned that Bitcoin could repeat last month’s movement, when BTC/USD briefly dropped to a 15-month low of $59,000. Data shows Bitcoin has declined nearly 17% so far this month and is on track for its fifth consecutive monthly loss—the first such occurrence since 2018.
U.S. PPI Data Exceeds Expectations, Bitcoin Faces Downside Risk
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Summary
U.S. January inflation data showed a 0.5% monthly increase in the PPI, exceeding the 0.3% forecast. Core PPI rose 0.8%, also surpassing expectations. On-chain data revealed Bitcoin fell nearly 3% intraday, trading near $66,178. Market odds for a March Fed rate cut have now dropped below 4%. Gold and silver surged, with gold reaching $5,200 per ounce. Traders warn Bitcoin could retrace to $59,000, a 15-month low. BTC has lost 17% this month and is on track for a fifth consecutive monthly decline.
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