US PPI Gives Bitcoin Bulls a New Headache Into the Monthly Close

Hotter US PPI inflation data boosted precious metals but punished Bitcoin bulls, with BTC price downside nearing 3% on the day.

Bitcoin (BTC) slid further into Friday’s Wall Street open as US inflation data overshot expectations.

Key points:

• Bitcoin price downside strengthens as US inflation data comes in hot.

• Gold and silver benefit from a risk-off response to January PPI data.

• Bitcoin price expectations face the prospect of a rocky monthly candle close.

Bitcoin under pressure after hot US PPI print

Data from TradingView showed daily BTC price downside nearing 2.5% on Bitstamp, while gold eyed its highest levels since late January.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The January print of the Producer Price Index (PPI) came in markedly above expectations at 0.5% month-on-month versus an anticipated 0.3%, per data from the US Bureau of Labor Statistics (BLS).

Core PPI fared even worse at 0.8% month-on-month instead of 0.3%.

US PPI one-month % change. Source: BLS

“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,” an official statement added.

With US inflation creeping higher more quickly than markets assumed, risk-asset pressure increased, while safe havens outperformed.

Gold passed $5,200 per ounce, while silver revisited $92 to hit its highest levels since Jan. 30.

XAU/USD one-day chart. Source: Cointelegraph/TradingView

Expectations for interest-rate cuts by the Federal Reserve at its March meeting fell below 4%, according to the latest readings from CME Group’s FedWatch Tool.

Fed target rate probabilities for March FOMC meeting (screenshot). Source: CME Group

BTC price fears over “massive collapse”

With the monthly close in focus, Bitcoin market participants remained on edge.

Related: Hodlers have ‘given up’ at $65K: Five things to know in Bitcoin this week

Crypto trader, analyst and entrepreneur Michaël van de Poppe warned of a possible rerun of events from early February, where BTC/USD put in 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 in his latest analysis on X. 

BTC/USDT 12-hour chart. Source: Michaël van de Poppe/X

Earlier, Cointelegraph reported on key resistance levels 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 roughly matched February 2025 in terms of performance, with losses nearing 17% month-to-date.

The pair prepared its fifth consecutive month of losses, a phenomenon absent from the charts since 2018, data from CoinGlass confirms.

BTC/USD monthly returns (screenshot). Source: CoinGlass

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