Bitcoin Breaks Below $80K as US PPI Surges to 6% — Fed Rate Cut Hopes Evaporate!

Bitcoin has fallen below the $80,000 mark after the latest US Producer Price Index reading came in at 6%, matching the elevated levels last seen during the 2022 inflation shock. The hotter-than-expected print has rattled crypto markets by forcing traders to reprice the Federal Reserve's rate path — cuts that Bitcoin bulls had been counting on are now off the table, and a renewed tightening bias is back in the conversation.

The macro logic is straightforward: when producer prices run this hot, the Fed has little political room to ease. Tighter-for-longer monetary policy compresses liquidity across risk assets, and Bitcoin — despite its maturing institutional base — remains highly sensitive to dollar liquidity conditions. The asset had been consolidating near $80K in anticipation of a dovish pivot; that thesis just took a direct hit.

The key question now is whether this is a one-month…