- Despite positive statistics in the US, the price of Bitcoin corrected downwards by 1,6% to the beginning of the $79,000 range.
- The rise in the US producer price index signals persistent inflation, which is forcing the Federal Reserve to tighten monetary policy.
On Wednesday, the U.S. Bureau of Labor Statistics published The producer price index (PPI) for April showed growth of 1,4%. This figure is the highest since March 2022, when the figure was 1,7%.
Despite the positive data, Bitcoin’s price responded with a 1,6% decline to reach the $79,000 range. This correction follows seven weeks of continuous growth.
The Bureau’s report also indicates that almost 60% of the April increase in final prices was due to a 1,2% increase in the final services index. Furthermore, it notes that prices of final goods increased by 2,0%, and the final price index excluding food, energy, and trade services increased by 0,6%, which should be considered the largest increase since October 2025, when it was 0,6%.
Typically, a rise in the US producer price index puts pressure on the price of Bitcoin. Therefore, BTC price decline The Bureau’s report came as no surprise to the crypto community after its publication. This economic indicator signals persistent inflation, which typically leads to tight monetary policy by the Federal Reserve and a stronger US dollar.
In addition, rising inflation forces the Federal Reserve to maintain high interest rates, which reduces overall liquidity capital in global financial markets. This, in turn, is forcing investors to abandon speculative, unprofitable assets in favor of safer and more profitable alternatives.
TradingView data affirm, that after the publication of the US Bureau of Statistics data on the producer price index Bitcoin was under downward pressure for 4 hours on May 13. At the moment, the main kriptovalyuta trading at the very beginning of the $79,000 range.
Optimists expect a quick recovery, but BTC volatility may increase after the next round of economic data releases in the coming days. The US Senate’s vote on the CLARITY Act will also be a significant event.
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