Bitcoin came below renewed selling pressure after Federal Reserve Chairman Jerome Powell signaled a cautious stance on future price cuts, triggering a broader market pullback. The important cryptocurrency dropped more than 5% in 24 hours, taking from weekly highs above $74,000 as macroeconomic troubles weighed on investor sentiment.
Fed Signals Drive Market Weakness
The decline accompanied warmer-than-anticipated U.S. Producer Price Index (PPI) information, which strengthened fears that inflation stays chronic. Core PPI climbed to 3.9% 12 year-over-year, surpassing expectations and reducing the risk of near-term financial easing.
Powell’s remarks further dampened the risk appetite, as he emphasised that inflation remains above the Federal Reserve’s 2% target, with headline PCE at 2.8% and center inflation at 3.0%. His “data-dependent” stance shows interest costs may want to live higher for longer, a situation that usually pressures risk belongings like cryptocurrencies.
Liquidations Accelerate the Drop
As Bitcoin fell to an intraday low near $70,176, the decline was intensified via a wave of liquidations throughout the crypto market. Over $382 million in long positions had been wiped out within a day, with Bitcoin and Ethereum accounting for more than $300 million combined.
This cascade of forced selling added momentum to the downside move, amplifying short-term volatility and shaking bullish sentiment.
$70K Support Holds—for Now
Despite the pointy pullback, consumers stepped in to defend the $70,000 level, a key psychological and technical support zone. Holding above this range has avoided a deeper correction towards the $60,000 area and kept the wider uptrend intact. Market individuals are now closely watching whether Bitcoin can hold stability above $70,000–$69,000, as this quarter should determine the following directional flow.
If support maintains to hold, Bitcoin may also try a rebound toward recent highs, doubtlessly focused on liquidity above. However, a breakdown below this level ought to open the door for further downside in the near term.
Source: https://thenewscrypto.com/bitcoin-slides-after-fed-caution-70k-emerges-as-critical-support/
