US PPI data surpasses expectations, Bitcoin drops sharply amid macroeconomic pressures

The cryptocurrency market is under strong pressure as recent US Producer Price Index (PPI) data exceeded economists’ expectations. According to a report from Cointelegraph, last month’s US PPI increased by 0.5% compared to the previous month, surpassing the forecast of 0.3%. Notably, core PPI – a more important indicator – rose by 0.8%, more than three times the expected 0.3%.

US PPI Data Directly Impacting the Digital Market

This strong US PPI data has triggered a negative reaction in the cryptocurrency market. Bitcoin faced significant downward pressure, dropping nearly 3% during the trading session. The current BTC price is around $68,210, down 1.02% in the past 24 hours. This pressure reflects market concerns about the implications of higher-than-expected inflation data and the reduced likelihood of the Fed cutting interest rates in March below 4%.

Safe-Haven Assets Benefit from Uncertain Sentiment

While Bitcoin struggles, traditional safe-haven assets have shown notable strength. Gold surpassed $5,200 per ounce, reaching a new high since late last month. Silver also rebounded strongly to $92, the highest since January 30. This shift reflects market sentiment—when macroeconomic data becomes unstable, investors tend to move toward assets considered stores of value.

Warning of History Repeating: Past Dangers

Professional traders and analysts warn that Bitcoin may repeat negative developments similar to last month. BTC/USD previously dropped to a 15-month low of $59,000, and the possibility of history repeating itself cannot be ruled out. Data shows that since the beginning of the month, Bitcoin’s price has fallen nearly 17%, facing the risk of five consecutive months of decline – a situation unseen since 2018. The combination of unfavorable US PPI data, interest rate outlook, and technical pressures creates a challenging environment for high-risk assets like Bitcoin.