Bitcoin dropped to monthly lows below $80k on hot inflation data and Fed Chair Warsh comments, while NEAR rallied nearly 10%.
Macro & Markets ·
Bitcoin declined to monthly lows below $80,000 following the release of inflation data that exceeded expectations, with the Producer Price Index showing its largest monthly increase in over four years. The asset had earlier fallen from $86,600 to $80,400 within days, recovered to around $83,000, and subsequently resumed weakness after the inflation readings triggered immediate selling pressure. By press time, Bitcoin traded near $81,500, representing a 1% weekly loss, while some altcoins experienced steeper declines. Fed Chair Kevin Warsh addressed markets at an International Monetary Fund and World Bank meeting in Bangkok, though he declined to signal the central bank's direction on rate hikes within a two-week window, leaving investors without clarity on monetary policy.
The broader crypto market showed divergent movement during the period. NEAR rallied nearly 10% while Bitcoin languished, and other assets including XRP, SOL, HYPE, RAIN, and QNT posted steeper losses. Beyond inflation concerns, the downturn was compounded by significant equity market declines in the Nikkei and KOSPI indices, as well as substantial Bitcoin exchange-traded fund outflows.
Questions remain about whether the Fed will signal future rate adjustments and how broader macroeconomic conditions will influence capital flows into cryptocurrency. The persistence of elevated inflation readings and policy uncertainty continue to weigh on price discovery across digital assets.