Bitcoin wiped out its weekly gains, dropping sharply toward a crucial support level as stronger-than-expected U.S. PPI data and hawkish signals from Jerome Powell dampened hopes of near-term rate cuts.
Summary
Bitcoin fell more than 5% to test the $70,000 support zone after hotter inflation data and Powell’s comments weakened expectations of monetary easing.
The broader crypto market also declined, with total market capitalization falling 3.8% to $2.51 trillion, while $455 million in liquidations intensified selling pressure.
Although technical indicators hint at a possible rebound, a break below $70,000 could open the door for further downside toward $65,000 and $60,000.
Bitcoin slides on macro pressure
Bitcoin dropped from a weekly high near $74,700 to an intraday low around $70,660, reflecting a sharp pullback driven by macroeconomic concerns. The decline came as U.S. producer price index (PPI) data surprised to the upside, signaling persistent inflation.
Core PPI rose to 3.9%, while headline PPI reached 3.4%, both exceeding expectations. This reinforced concerns that inflation may not be cooling fast enough, reducing the likelihood of imminent rate cuts by the Federal Reserve.
Investor sentiment was further shaken by Powell’s remarks, where he emphasized a data-dependent approach and reiterated that interest rates would remain elevated for longer, citing inflation pressures partly driven by rising energy costs and geopolitical tensions.
Liquidations amplify the drop
The sharp decline triggered a wave of liquidations across leveraged crypto positions. According to market data, around $455 million worth of positions were wiped out, with long traders accounting for the majority of losses. Bitcoin alone saw over $150 million in liquidations, accelerating the downward move.
Major altcoins—including Ethereum, XRP, Solana, and Dogecoin—also mirrored Bitcoin’s decline.
Can Bitcoin recover?
Bitcoin is now hovering near the key $70,000 level, widely seen as both a psychological and technical support zone.
Some technical indicators suggest a potential rebound. The Supertrend indicator has flipped bullish, while the MACD is showing signs of upward momentum, hinting that selling pressure may be easing.
If Bitcoin manages to break above immediate resistance near $72,540, it could rally toward $74,500. However, a decisive breakdown below $70,000 could trigger further losses, with $65,000 and $60,000 emerging as the next key support levels.
