Bitcoin Falls Below $80,000 After US PPI Rises 6%

Bitcoin fell below $80,000 to about $79,700 after the Labor Department reported April producer prices rose 1.4% month-over-month and 6.0% year-over-year. Economists had forecast a 0.5% monthly gain and a 4.9% annual rate. The PPI print followed a consumer price index reading the prior day that showed headline CPI at 4.8% year-over-year.

Core PPI, which excludes food and energy, increased 1.0% month-over-month and rose to 5.2% year-over-year from 4.0% the prior month. A measure excluding food, energy and trade services rose 0.6% month-over-month and 4.4% year-over-year.

Trading reacted quickly. Bitcoin slipped from the low $81,000 area to a session low near $79,557 and was trading around $79,700 after the print. Market participants identified $80,000 as a key intraday level for Bitcoin.

Equities and fixed income also moved. An S&P 500 exchange-traded fund traded down from above $740 to about $737, with a lower intraday wick near $735.48. Longer-term Treasury yields rose, with the 30-year around 5.03% and the 10-year near 4.47%. The U.S. dollar index held near 98.49 and WTI crude traded around $102.15 per barrel.

Markets saw limited retracement later in the session. Bitcoin recovered slightly from the $79,557 low toward $79,700, and equities and yields pulled back from session extremes. Continued buying in crude oil and a firm dollar kept pressure on risk assets.

At the time of the report, Bitcoin’s market capitalization was about $1.6 trillion, 24-hour trading volume near $31.85 billion, circulating supply about 20.03 million coins and Bitcoin dominance roughly 60.06% of the broader cryptocurrency market, which had a global cap near $2.66 trillion.

Economists note producer prices feed into firms’ cost structures and form part of the personal consumption expenditures measures the Federal Reserve monitors. Higher producer inflation can affect interest-rate expectations and longer-term yields.