Bitcoin (BTC) slid further at Friday’s Wall Street open after US inflation data overshot expectations.
Key points:
– Bitcoin downside strengthened after hotter-than-expected US PPI.
– Gold and silver gained as markets moved risk-off on January PPI.
– Bitcoin faces the prospect of a rocky monthly candle close.
Bitcoin under pressure after hot US PPI print
TradingView data showed daily BTC losses nearing 2.5% on Bitstamp while gold approached its highest levels since late January.
The January Producer Price Index (PPI) rose 0.5% month-on-month versus an expected 0.3%, per the US Bureau of Labor Statistics. Core PPI was 0.8% month-on-month, against a 0.3% forecast.
“The January increase in prices for final demand can be traced to a 0.8-percent advance in the index for final demand services. In contrast, prices for final demand goods declined 0.3 percent,” the BLS said.
With US inflation creeping higher than expected, risk assets weakened and safe havens outperformed. Gold passed $5,200 per ounce and silver revisited $92, its highest since Jan. 30.
Expectations for Federal Reserve interest-rate cuts at the March meeting fell below 4%, according to CME Group’s FedWatch Tool.
BTC price fears over “massive collapse”
With the monthly close in focus, market participants remained on edge. Crypto trader and analyst Michaël van de Poppe warned of a possible rerun of early February moves, when BTC/USD hit 15-month lows near $59,000.
“Pretty crucial area for me to hold on to. I’d highly favor that $BTC finds a higher low at $65k,” he wrote on X. “However, last day of the month; remember last month? A massive collapse on the markets. Let’s see what it brings: holding $65K opens up the scenario to run up from here.”
Earlier coverage highlighted key resistance for bulls to reclaim, notably the 200-week exponential moving average (EMA) and old all-time highs around $69,000.
At the time of writing, BTC/USD’s month-to-date performance roughly matched February 2025, with losses near 17%. The pair was poised for a fifth consecutive month of losses, a streak not seen since 2018, CoinGlass data shows.
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