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Sign InBitcoin price dropped below the $80,000 psychological level following hotter-than-expected U.S. Producer Price Index (PPI) data. This macro pressure triggered significant liquidations, with Bitcoin ETFs recording net outflows of $635.2 million on Wednesday. According to reports, Ethereum ETFs also faced selling pressure, reporting net outflows of $36.3 million as investor sentiment shifted toward caution.
The decline aligns with broader inflationary signals; for instance, China's Producer Price Index rose 2.8% YoY in May, significantly exceeding the 1.5% forecast per market data. This global trend of persistent producer inflation strengthens the case for central banks, led by the Fed, to maintain restrictive monetary policies. Historically, such environments dampen the appeal of speculative assets, impacting not only Bitcoin but also major peers like Ethereum and XRP.
Market participants are now watching for stability around recent lows, with Bitcoin trading near key levels at the close of May 14, 2026. Upcoming catalysts include a series of speeches from Federal Reserve officials, including Governors Cook, Daly, and Bowman on May 8, 2026. These appearances will be vital for assessing whether the Fed remains committed to a 'higher for longer' stance, which could further dictate crypto price action.