The post Hot PPI Sends Bitcoin Below $83K Inflation Fears appeared on BitcoinEthereumNews.com.

U.S. PPI hit 3% in December, above forecasts, sending Bitcoin below $83,000 as traders reassess rate cuts. outlook dims now. Bitcoin prices declined after U.S. producer inflation data exceeded market expectations. The higher reading reinforced concerns that inflation remains persistent, while traders reassessed the outlook for interest rate cuts. Digital asset markets reacted quickly as macroeconomic pressure returned to focus. U.S. Producer Inflation Exceeds Market Expectations Data from the Bureau of Labor Statistics showed producer prices rose 3% year-over-year in December. This reading exceeded forecasts of 2.7%. On a monthly basis, the Producer Price Index increased by 0.5%, also above the expected 0.2%. Core PPI, which excludes food and energy, rose 3.3% year-over-year. That figure was higher than the 2.9% estimate, although lower than November’s 3.5% reading. Monthly core PPI increased by 0.7%, well above expectations of 0.2%. The data signaled that pricing pressure at the producer level remains elevated. Market participants viewed the report as confirmation that inflation progress remains uneven. Attention shifted to how the Federal Reserve may respond. Bitcoin Slips Below $83,000 After Data Release Bitcoin moved lower following the release of the PPI figures. The asset traded near $82,000 at press time after briefly touching $83,000 earlier in the session. Price weakness followed the inflation report and broader market reaction. The cryptocurrency fell more than 2% on the day and dropped to around $81,000 at its lowest point. This move marked a new yearly low. Trading data showed increased volatility following the economic release. Earlier gains linked to political developments faded as macro data took precedence. Investors appeared to reduce exposure amid uncertainty around future monetary policy. The inflation report added pressure across risk assets. Federal Reserve Signals Caution on Rate Policy The hot PPI reading came days after the Federal Reserve held interest rates steady.…

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Filed under: News - @ January 31, 2026 8:19 am