The U.S. March Producer Price Index (PPI) surged significantly, rising 0.7% month-over-month, far exceeding the previous expectation of 0.3%, marking the largest increase since last summer. This higher-than-expected inflation data forced the market to reassess, reducing expectations for an imminent Federal Reserve rate cut and pushing up the dollar exchange rate. Bitcoin, as a barometer of liquidity, immediately faced selling pressure, with the $74,000 to $76,000 range now viewed as a strong resistance level. This data has increased the likelihood of the Federal Reserve taking a hawkish stance, suggesting that Bitcoin's path back to $100,000 is not smooth sailing amid persistent inflation concerns.
The U.S. March Producer Price Index (PPI) surged significantly, rising 0.7% month-over-month, far exceeding the previous expectation of 0.3%, marking the largest increase since last summer. This higher-than-expected inflation data forced the market to reassess, reducing expectations for an imminent Federal Reserve rate cut and pushing up the dollar exchange rate. Bitcoin, as a barometer of liquidity, immediately faced selling pressure, with the $74,000 to $76,000 range now viewed as a strong resistance level. This data has increased the likelihood of the Federal Reserve taking a hawkish stance, suggesting that Bitcoin's path back to $100,000 is not smooth sailing amid persistent inflation concerns.