Although Bitcoin just ran into a brutal macro wall April’s PPI came in scorching hot at 6.0% YoY, the highest level since late 2022, and markets reacted instantly. After CPI already shook sentiment, PPI added another layer of pressure and BTC felt it immediately.

→ Inflation Isn’t Cooling Fast Enough
• CPI printed 3.8%
• PPI surged 1.4% MoM vs 0.5% expected
• Core PPI climbed 5.2%
• Energy prices jumped 7.8%
• Transportation costs spiked 5%

This is not isolated inflation anymore. The pressure is spreading across the economy.

→ Bitcoin Reacts Hard
BTC slipped below $80K shortly after the data dropped.

In just hours:
• Price swung between $78.7K and $81.3K
• Over $250M in longs got liquidated
• Fear & Greed cooled to neutral territory
• Traders stayed surprisingly bullish despite the selloff

The market structure is split between optimism and caution.

→ Why Macro Is Crushing Risk Assets
The bigger issue is rates.

Hot inflation killed most expectations for near-term Fed cuts, and now markets are even discussing the possibility of another hike this year.

That matters because:
• Treasury yields keep rising
• The dollar strengthens
• Liquidity tightens
• Tech stocks weaken
• Bitcoin follows risk sentiment lower

Right now BTC is trading more like a high-beta macro asset than digital gold.

→ ETF Flows Suddenly Reverse
Institutional momentum also slowed down fast.
US spot Bitcoin ETFs recorded heavy outflows after days of strong inflows:
• $268M+ exited in one session
• Fidelity and BlackRock both saw major withdrawals
• Thousands of BTC left ETF holdings

Not panic selling, but definitely profit-taking and risk reduction as macro conditions worsen.

→ More Supply Is Entering The Market
Bhutan continues systematically selling Bitcoin mined through its state-backed hydro operations.

At the same time, old dormant wallets are waking up again:
• A 2013 wallet moved 500 BTC
• Another early holder shifted 2,100 BTC earlier this year

Analysts believe most of these moves are OTC-related rather than exchange dumps, but psychologically it still adds pressure to the market narrative.

→ Technicals Still Mixed
The higher timeframe trend remains constructive:
• MA7 > MA30 > MA120 on daily structure
• Long-term momentum still intact

But short-term momentum looks weak:
• 4H CCI deeply oversold
• Heavy volume on the selloff confirms real fear
• Key support sits around $78.8K
• Resistance remains stacked near $82K–$83K

A relief bounce is possible, but macro conditions are limiting upside momentum for now.

→ The Fed Is Back In Control
New Fed Chair Kevin Warsh steps into one of the toughest inflation environments in years.

Markets expect rates to remain unchanged at the next meeting, but the bigger question is whether inflation can cool fast enough before financial conditions tighten further.
That uncertainty is now driving crypto more than narratives, memes, or hype.

Right now the market is balancing between:
• Sticky inflation
• ETF outflows
• Rising yields
• Whale movements
• Slowing liquidity

BTC is still holding its broader bullish structure, but macro pressure is becoming impossible to ignore.

The big question now:
Does Bitcoin build a stronger floor around $78.8K… or is the market preparing for another deeper liquidity sweep first?
$BTC ‌#GateSquareMayTradingShare