Bitcoin threatens new breakdown as US PPI sends gold to 1-month high

💡 DMK Insight

The recent spike in US PPI inflation is shaking up the crypto market, and here’s why that matters for Bitcoin traders: With BTC dropping nearly 3% to around $65,862, it’s clear that inflation data is weighing heavily on risk assets. Traders often view Bitcoin as a hedge against inflation, but when inflation fears rise, it can lead to a sell-off as investors flock to safer assets like gold. This dynamic is crucial to understand, especially as we approach key support levels. If BTC fails to hold above $65,000, we could see further downside, potentially testing the $62,000 mark. Keep an eye on correlated assets like gold, which may see a rally as Bitcoin struggles. On the flip side, if inflation data stabilizes or shows signs of easing, we could see a rebound in Bitcoin. Watch for any shifts in sentiment around the next inflation report, as that could trigger a significant move in both BTC and precious metals. The immediate focus should be on how BTC reacts to these macroeconomic indicators in the coming days.