Bitcoin price has fallen under $66,000 today after the US Producer Price Index rose 2.9% year over year, topping the 2.6% estimate and signaling stronger inflation pressure. The hotter PPI reading also showed core PPI at 3.6%, which increased concern that the Federal Reserve may keep interest rates steady for longer. Traders reacted quickly as weak liquidity across the crypto market added to the move.
US PPI Surges Above Forecasts and Sparks Market Reaction
The latest U.S. Producer Price Index showed a clear rise in wholesale inflation. Headline PPI reached 2.9% on a yearly basis, above the forecast of 2.6%. Core PPI rose to 3.6%, also higher than the expected 3%. Core wholesale prices gained 0.8% in January, which was far above the estimate of 0.3%. These figures added pressure on markets expecting softer inflation data.
The report showed service prices rose 0.8% in January. This marked the strongest increase since mid-2025. Goods prices fell 0.3%, but core goods increased 0.7%, showing new cost pressure across several industries. Trade services also saw a 2.5% jump during the month. Analysts say these numbers suggest that inflation has not cooled enough for the central bank to change its stance soon.
Market reaction was immediate because traders viewed the report as a signal that interest rates may remain steady for several more months. Some investors also noted that the data arrived as risk sentiment was already fragile in global markets. Bitcoin moved lower soon after the release because higher inflation reduces demand for risky assets.
BTC Falls as Whales Move Funds and Liquidity Tightens
Bitcoin dropped under $66,000 after the inflation data and remained volatile during the next hour. Blockchain records showed two large transfers from Bitget, each carrying 2,000 BTC. The total value of the moves reached about $270 million based on current prices. These transfers were sent to unknown wallets and were viewed as possible offline accumulation.
Whale behavior often draws attention during unstable periods because it can signal changes in long-term positioning. Traders said the moves came after a week of weaker demand and falling futures activity. Bitcoin lost momentum after its brief rally and has now returned to a narrow trading range. The combined effect of inflation data and whale activity placed more pressure on short-term sentiment.
Source: X
Heat map data showed new liquidation clusters forming at two key levels. A heavy short liquidation zone developed near $69,000. A dense long liquidation area formed around $66,000. The BTC price is now moving between these two levels because traders are waiting for new direction. Analysts noted that whichever side breaks first may trigger a larger move.
Will BTC Price Dip Continue?
Despite the BTC price volatility, crypto analyst Willy Woo has noted BTC may rebound to $75,000 in the short term and then consolidate. He said selling pressure may be easing, yet he warned the broader setup is bearish. He noted that both spot and futures liquidity remain weak.
He said he has never seen BTC rally during a period when both liquidity sources remain under stress.
Source: X
Some traders now watch downside targets near $45,000 if momentum weakens further. Woo also said a deeper move to $30,000 could appear if global macro conditions deteriorate. He added that $16,000 remains the final level to maintain the broader trend.
Source: https://coinpaper.com/15003/btc-price-falls-under-66-k-as-us-ppi-inflation-rises-to-2-9
