Bitcoin Holds Around $80K as U.S. Inflation Data Pressures Crypto Market

• Bitcoin fell below $80K after fresh U.S. inflation data increased Fed rate pressure expectations.
• Polymarket traders now price a 40% chance of a Fed rate hike by the October meeting.
• Total crypto market capitalization dropped 1.92% as inflation concerns pressured risk assets.

Bitcoin traded at $79,576.80 after posting a 1.87% daily decline at the time of writing, following new U.S. inflation data that added fresh pressure across digital asset markets and prompted traders to reassess expectations for Federal Reserve policy. 

The latest Producer Price Index (PPI) report followed stronger-than-expected Consumer Price Index (CPI) figures released a day earlier, adding to concerns that inflationary pressure remains high across the U.S. economy.

The combined data contributed to renewed caution across crypto markets as investors monitored the possible impact of higher interest rates on liquidity-sensitive assets.

US PPI Inflation Adds to Market Uncertainty

The latest U.S. PPI report showed producer prices increased by 1.4% in April, accounting for the largest monthly rise since March 2022. On an annual basis, final demand prices rose 6.0%, the strongest increase since January 2023.

The report showed price pressure across both goods and services. Final demand goods increased by 2.0%, while services rose by 1.2% during the month. Energy prices remained a major contributor to inflation, with final demand energy rising by 7.8%. Gasoline prices also rose by 15.6%, adding to higher costs in supply chains.

Core PPI data, which excludes food, energy, and trade services, also moved higher. Core producer prices rose 0.6% in April and increased by 4.4% compared to the same period last year.

The inflation figures arrived shortly after April CPI data showed consumer inflation rising to 3.8% annually. Core CPI reached 2.8%, while energy prices rose 17.9% over the previous 12 months. Gasoline prices also rose 28.4% annually.

The current inflation readings increased pressure on expectations for interest rate cuts later in 2026. According to Polymarket data, traders continued pricing in high inflation risks and tighter Federal Reserve policy expectations. The prediction market showed a 97% probability that inflation in 2026 would remain above 4%, while markets assigned a 30% chance that May’s annual U.S. inflation rate would reach at least 4.4%.

Meanwhile, a separate Fed contract reflected a 40% probability of a rate hike by the October meeting following recent inflation data releases.

Crypto Market Records Broad Declines

Crypto market indicators reflected weaker trading conditions following the inflation data release. Total crypto market capitalization declined 1.92% to approximately $2.65 trillion, while the CMC20 index fell 2.1% to $161.35.

At the same time, the Fear and Greed Index registered a neutral reading of 46, showing cautious sentiment across the market.

Ethereum traded at $2,259.74, down 2.37% over the same period. Tether remained stable near its dollar peg at $0.9995, while BNB traded at $671.16, and XRP hovered around $1.43 despite mixed short-term performance across major digital assets.

Related: U.S. Import Prices Surge 1.3% in February, Exports Up 1.5% – How Crypto Will React