Hot US PPI Pressures Bitcoin Ahead of Month-End

Bitcoin slipped further at Friday’s Wall Street open after US inflation data came in hotter than expected, raising fresh concerns for bulls as the month draws to a close.

Market reaction

TradingView showed Bitcoin losing nearly 2.5% on Bitstamp early Friday, while gold climbed to levels not seen since late January and silver revisited about $92 as markets turned risk-off.

US inflation data

The US Producer Price Index for January rose 0.5% month-on-month versus a 0.3% consensus, according to the US Bureau of Labor Statistics. Core PPI jumped 0.8% month-on-month, well above the 0.3% forecast. The BLS said the increase was driven by a 0.8% advance in final demand services, while final demand goods fell 0.3%.

Macro and markets

The hotter-than-expected PPI reduced expectations for near-term Federal Reserve easing. CME Group’s FedWatch Tool showed the probability of a rate cut at the March meeting fell below 4%. Risk assets weakened as investors moved into perceived safe havens.

Crypto market positioning

Traders watched the monthly candle closely. Crypto analyst Michaël van de Poppe flagged a key support region around $65,000 and warned of the potential for a repeat of early-February weakness when BTC hit 15-month lows near $59,000. He said holding around $65K would set up a scenario for a higher low and potential upside, but noted the final day of the month can bring abrupt volatility.

Technical levels and context

Bulls remain tasked with reclaiming major resistance, including the 200-week exponential moving average and the old all-time highs around $69,000. At the time of writing, BTC’s month-to-date losses were roughly in line with February 2025, about 17% down, and the pair was on track for a fifth consecutive monthly loss — a streak not seen since 2018 (CoinGlass).

Disclosure

This is not investment advice. Trading and investing carry risk; readers should do their own research before making decisions.