The U.S. Producer Price Index (PPI) jumped to 3.3%, exceeding analysts’ expectations. This signals persistent inflationary pressure, potentially delaying Federal Reserve rate cuts. Such an outcome is bearish for risk assets like Bitcoin, as tighter monetary policy limits liquidity.
The crypto market saw a $420 million liquidation wave within 20 minutes, likely triggered by leveraged long positions being wiped out. This rapid forced selling underscores how fragile sentiment and prices can be amid sudden market shifts.
Treasury Secretary Bessent confirmed that the U.S. government has no plans to purchase Bitcoin. While unsurprising, the explicit statement deflates any remaining hope for sovereign-level demand, removing a potential bullish catalyst.
