Bitcoin dips to $72K on hot US PPI inflation hours before Fed FOMC meeting
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Bitcoin price action fell to week-to-date lows with Bitcoin caught between high US inflation and nerves over Fed policy hints at the day's FOMC meeting.
Bitcoin (BTC) slid 2.5% around Wednesday’s Wall Street open as a fresh US inflation overshoot spooked markets.
US PPI inflation surpasses market expectations again, continuing its “hot” 2026 trend.
BTC price pressure results at the Wall Street open, as markets brace for the Federal Reserve interest-rates decision.
Traders see no reason to rethink their bearish stance on Bitcoin.
Data from TradingView showed $72,000 coming back into focus for BTC price action after the February print of the Producer Price Index (PPI).
This came in markedly above expectations at 0.7% month-on-month and 3.4% year-on-year, extending a trend from recent months. Markets had foreseen 0.3% and 3%, respectively.
“On an unadjusted basis, the index for final demand rose 3.4 percent for the 12 months ended in February, the largest 12- month advance since increasing 3.4 percent in February 2025,” an official statement from the US Bureau of Labor Statistics (BLS) confirmed.
The timing of the release was pertinent, coming just hours before the Federal Reserve was due to release its decision on interest-rate changes.
While markets saw practically no chance of a rate cut or hike, the Federal Open Market Committee (FOMC) meeting could still spark volatility based on the tone of Chair Jerome Powell’s accompanying statement and press conference.
“Macro remains the dominant driver into what is arguably the most important central bank week of the year,” trading company QCP Capital wrote in its latest “Market Color” analysis on the day.
QCP noted that other major central bank rate moves were scheduled for the day after the Fed.
“Markets have sharply pared easing expectations as higher oil prices complicate the path for rate cuts, even as growth and labour data soften,” it continued.
Lower interest rates imply better liquidity prospects for crypto and risk assets, while a hawkish Fed tends to pressure prices.
Going into FOMC, Bitcoin traders were firmly risk-off.
Related: Bitcoin sparks ‘bull trap’ warning after BTC price rejects at $76K
“$BTC hovering below weekly resistance; FOMC later today - I think caution pays here,” trader Jelle wrote in his latest commentary on X.
An accompanying chart showed the risk of a fresh BTC price support breakdown, with Jelle and others having stated that Bitcoin remains in a bear market.
$BTC 1DIt looks almost exactly the same.Bear Flag Breakdown & Retest with low volume on the upward move.Most oversold indicators have completely reset. pic.twitter.com/NBvrE1K5Mf
Crypto analyst Michaël van de Poppe, meanwhile, was more optimistic, still seeing a chance of $80,000 reappearing.
“Very strong move on $BTC this month, and now it's consolidating. Nothing wrong with that, the opposite actually,” he told X followers.
Van de Poppe acknowledged that he also “wouldn’t be surprised” at a test of range lows.
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Source: CoinTelegraph
