Bitcoin holds below $70K as stocks slip despite a cooler US PPI print
Bitcoin hovered around $68,700 on Friday, failing to reclaim the $70,000 mark after hitting a 12-week low near $67,500, while stocks slipped following the latest US inflation data.
Bitcoin (BTC) struggled to regain its footing on Friday, trading around $68,700 after dipping to approximately $67,500, its lowest level since mid-August. The cryptocurrency's price movement mirrored broader market sentiment as stocks failed to find support following the latest US inflation data.
The US Producer Price Index (PPI) rose 0.3% month over month and 6.5% year over year in October, readings that were 0.1 percentage points below market expectations. Despite missing forecasts, the annual increase marked the largest since November 2022, indicating persistent inflationary pressures.
Inflation Data Shapes Market Expectations
The PPI release influenced expectations for Federal Reserve policy, with odds of a minimal 25-basis-point hike at the Fed's December meeting rising from 85.4% on Thursday to 89.7%. Meanwhile, the probability of a larger 50-basis-point move decreased from 14.5% to 10.3%, according to CME Group's FedWatch Tool.
If high inflation is about the Strait of Hormuz and oil, 75 basis points won't do anything about that. If the issue is that the pace of underlying inflation has risen, then 75 basis points is much too timid to get this under control.
Bitcoin Faces Technical Pressure
Crypto trader Rekt Capital warned that a weekly close below $73,000 could mark Bitcoin's third break of that support level in 2026, potentially leading to a price drop similar to the previous two breakdowns that saw Bitcoin fall to around $60,000.
At $68,700, Bitcoin is down 17.7% in the fourth quarter and 11.2% month to date, with its quarterly performance currently ranking as the second worst on record. The market continues to grapple with the implications of persistent inflation and its potential impact on monetary policy.
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