Bitcoin experienced a 3% drop following the release of January's producer price index (PPI), which exceeded expectations. The January PPI inflation rate was reported at 2.9% year-over-year, surpassing the consensus estimate of 2.6%. Core PPI, excluding food and energy, rose to 3.6% year-over-year, compared to the expected 3.0%. According to reports, the increase was primarily concentrated in services, while goods and energy saw declines. The market is now assessing whether the producer-side inflation, particularly in services and margins, will impact consumer prices. Crypto markets often react to shifts in U.S. rate expectations because those shifts can change discount rates and broad liquidity conditions. The development saw Bitcoin fall from $68,289 to $66,255.

Bitcoin experienced a 3% drop following the release of January's producer price index (PPI), which exceeded expectations. The January PPI inflation rate was reported at 2.9% year-over-year, surpassing the consensus estimate of 2.6%. Core PPI, excluding food and energy, rose to 3.6% year-over-year, compared to the expected 3.0%. According to reports, the increase was primarily concentrated in services, while goods and energy saw declines. The market is now assessing whether the producer-side inflation, particularly in services and margins, will impact consumer prices. Crypto markets often react to shifts in U.S. rate expectations because those shifts can change discount rates and broad liquidity conditions. The development saw Bitcoin fall from $68,289 to $66,255.