Hot U.S. PPI data sends Bitcoin sliding below $66K

Hotter-than-expected U.S. PPI data for January 2026 sent Bitcoin below $66,000, as inflation fears grew and markets anticipated the Fed may keep rates high for longer.

The U.S. Producer Price Index (PPI) data for January 2026 revealed inflation running hotter than anticipated. Headline PPI rose 0.5% month-over-month and 2.9% year-over-year, both surpassing forecasts. Core PPI, which excludes food and energy, climbed 0.8% monthly and 3.6% annually—its highest level in nearly 10 months. The main contributors were increased service costs and trade margins, while goods prices declined due to lower energy and food prices. These mixed PPI results created uncertainty in financial markets, leading to immediate declines in Bitcoin and other cryptocurrencies. Bitcoin notably dropped below $66,000 following the release. The data heightened concerns that the Federal Reserve may maintain higher interest rates for longer, as inflation remains above the 2% target. With the February PPI report postponed until March 18, investor caution and market uncertainty persist.