Bitcoin Slips Below $80K After PPI Data Triples Forecast, Adding To Inflation Fears

Bitcoin (BTC) and the broader cryptocurrency market wobbled in early morning trade on Wednesday after wholesale inflation data came in hotter than expected, adding to pressure from Tuesday’s elevated consumer price index (CPI) report.

Producer inflation rose 1.4% in April, nearly three times the expected rise of 0.5%, according to economists polled by MarketWatch. Core producer prices rose 0.6% in April from the previous month, double Wall Street expectations of 0.3%. On an annual basis, PPI rose 6% and core PPI increased 4.4%.

On Tuesday, core consumer prices, excluding food and energy, rose 0.4% in April from the previous month, above Wall Street expectations of 0.3%. On an annual basis, core CPI increased 2.8%, also slightly above estimates of 2.7%.

Bitcoin’s Price Takes A Momentary Hit

Bitcoin’s price fell below $80,000 momentarily, before recuperating to around $80,200. Still down 0.9% in the last 24 hours. Retail sentiment around the apex cryptocurrency on Stocktwits trended in ‘neutral’ territory over the past day, accompanied by ‘normal’ levels of chatter. 

The momentary dip also wiped out over $63 million crypto bets in the last hours, with long positions accounting for $61 million, according to CoinGlass data.

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Read also: Bitcoin Traders Brace For PPI Data, CLARITY Act — Could ‘Go Both Ways’ For BTC, Says MN Fund Investment Chief

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