U.S. Inflation Surprise Pressures Crypto; Bitcoin Slips Below $80,000
CoinDesk reported that stronger-than-expected U.S. inflation data weighed on risk assets, pulling cryptocurrencies back and wiping out earlier gains. Bitcoin fell below $80,000, while Ethereum, XRP, Solana and Dogecoin also moved lower, reviving concerns that the Federal Reserve may keep interest rates high for longer.
Inflation print dents risk appetite
The latest U.S. inflation readings came in hotter than markets anticipated, prompting traders to rethink the pace of potential rate cuts. Core PPI rose 5.2% year over year, above the 4.3% consensus, and the monthly figure also exceeded forecasts. The data reinforced expectations of a more hawkish Fed stance, pressuring speculative assets.
TradingView data showed Bitcoin at about $79,094 at the time of publication. Ethereum fell to around $2,221, XRP traded near $1.43, Solana at $89.13 and Dogecoin at $0.1133. Cardano and BNB were also lower.
Spot Bitcoin ETFs see persistent outflows
Onchain analytics firm Glassnode said the seven-day average net outflow from U.S. spot Bitcoin ETFs has fallen to $88 million per day, marking the largest sustained outflow since mid-February. Glassnode argued the current withdrawals differ from February's, when redemptions coincided with weakening prices; this wave looks more like profit-taking during a rebound.
The firm said some institutional investors appear to have used the recent rally to trim exposure rather than selling in a panic. The shift has weighed on sentiment and added selling pressure for Bitcoin around the $80,000 level.
Key figures
Seven-day average net outflow for U.S. spot Bitcoin ETFs: $88 million per day
Bitcoin price: about $79,094
Ethereum price: about $2,221
PCE and geopolitical risks add to the headwinds
Beyond PPI, the report noted the PCE inflation gauge watched more closely by the Fed rose to its highest level since August 2023, while core PCE hit its highest since November 2023. As inflation proves stickier, expectations have increased that rates may stay elevated for an extended period.
Geopolitical tensions involving the United States and Iran were also cited as an additional risk factor. Taken together—hotter macro data, ETF outflows and geopolitical uncertainty—the pressures have weighed on crypto in the near term, reversing part of the earlier advance tied to U.S. Senate progress on the CLARITY Act.
