Bitcoin Drops Toward $65,000 as Hot US Inflation Data Dampens Rate Cut Hopes

Bitcoin experienced a sharp decline of over 3.5%, retreating toward the $65,000 mark in recent trading sessions. The sell-off followed the release of US Producer Price Index (PPI) data, which came in significantly higher than market expectations. This robust inflation reading has effectively dampened hopes for imminent interest rate cuts by the Federal Reserve. Higher-for-longer interest rates typically reduce global liquidity and dampen investor appetite for speculative risk assets like cryptocurrencies. Market analysts suggest that Bitcoin may continue to trade within a sideways range in the near term due to these macroeconomic headwinds. A sustained recovery will likely depend on the emergence of fresh institutional demand to offset current market pressure.