US Producer‑Price Index Fuels New Headache for Bitcoin Bulls Ahead of Monthly Close
By [Your Name] – Crypto Markets Desk
February 23, 2026
Summary
- January PPI surprises on the upside: 0.5 % month‑over‑month (MoM) versus the 0.3 % consensus; core PPI 0.8 % versus 0.3 %.
- Risk‑off shift: Gold breached $5,200/oz and silver retreated to $92/oz, their highest levels since late January.
- Bitcoin under pressure: BTC/USD slid 2.5‑3 % on the day, extending a 17 % month‑to‑date decline and setting up a potentially turbulent monthly candle close.
- Market sentiment: Probability of a Fed rate cut at the March FOMC fell below 4 % (CME FedWatch), underscoring heightened inflation concerns.
Inflation Data Sparks a Market Pivot
The U.S. Bureau of Labor Statistics released its Producer Price Index (PPI) for January on Friday, revealing a 0.5 % rise from the previous month—well above the 0.3 % forecast of most economists. The core PPI, which strips out volatile food and energy components, rose 0.8 % MoM, again outpacing expectations.
The BLS attributed the surge primarily to a 0.8 % increase in final‑demand services, while prices for final‑demand goods actually fell 0.3 %. The broader implication is that price pressures are building more quickly than markets had priced in, prompting a swift reallocation from risk assets to traditional safe havens.
Safe‑Haven Rally
- Gold: The yellow metal rallied past the $5,200 per ounce threshold, a level not seen since late January.
- Silver: The metal surged to $92 per ounce, matching its peak from Jan. 30.
Both metals benefitted from the “risk‑off” sentiment that typically follows hotter‑than‑expected inflation reports.
Bitcoin’s Downward Drift
Bitcoin, the flagship cryptocurrency, opened lower on Wall Street and continued to slide throughout the trading session. Data from TradingView showed a 2.5‑3 % drop on the day on the Bitstamp exchange, extending a broader bearish trend that has seen the digital asset lose roughly 17 % in February so far.
Monthly Close in Focus
The end‑of‑month price action is now under heightened scrutiny. A sustained decline could lead to the fifth consecutive month of losses for BTC—a streak not observed since 2018, according to CoinGlass analytics.
Analyst and crypto‑trader Michaël van de Poppe highlighted the risk of a “massive collapse” reminiscent of early‑February when Bitcoin briefly touched 15‑month lows near $59,000. Van de Poppe emphasized the importance of defending the $65,000 region, suggesting that a break below could expose the market to further downside pressure.
Technical Landscape
- Key resistance: The 200‑week exponential moving average (EMA) and the historic all‑time‑high cluster around $69,000 remain critical hurdles for bullish participants.
- Support considerations: Maintaining a higher low above $65,000 would be pivotal for a potential rebound; a breach could accelerate a sell‑off toward lower weekly lows.
Monetary‑Policy Outlook
The CME Group’s FedWatch Tool shows that the probability of an interest‑rate cut at the March Federal Reserve meeting has slipped to under 4 %. The diminished likelihood of near‑term easing reinforces the narrative that the Fed may keep policy tighter for longer, a factor that traditionally weighs on speculative assets such as Bitcoin.
Key Takeaways
| Factor | Impact on Bitcoin | Implication |
|---|---|---|
| Hotter-than‑expected PPI (0.5 % MoM, core 0.8 %) | Increased inflation expectations → risk‑off shift | Downward pressure on BTC price |
| Gold & Silver rally | Safe‑haven assets outperform | Highlights investor flight from risk |
| Fed rate‑cut probability <4 % | Tighter monetary stance expected | Reduces liquidity support for crypto |
| Technical levels | $65k (support), $69k (resistance) | Breach of $65k could trigger further declines |
| Monthly loss streak | 5th month of losses, first since 2018 | Heightened focus on month‑end candle formation |
Outlook
If inflation data continues to outpace forecasts, the market may see additional “risk‑off” bouts, keeping pressure on Bitcoin and other high‑beta assets. Conversely, any signs that the Fed might pivot to a more accommodative stance could revive interest in crypto as an alternative store of value. Traders should monitor upcoming releases—CPI, employment figures, and Fed commentary—to gauge whether the current bearish momentum will endure or give way to a short‑term corrective bounce.
The information presented here is for educational purposes and does not constitute investment advice. Readers should conduct their own due diligence before making any trading decisions.
Source: https://cointelegraph.com/news/bitcoin-threatens-new-breakdown-us-ppi-gold-1-month-high?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
