Bitcoin Breaks Below $80K as Producer Inflation Surges to 6% — Fed Rate Cuts in Doubt!

Hotter-than-expected producer price data sent Bitcoin briefly below the critical $80,000 level on Wednesday. The April Producer Price Index jumped 1.4% month-over-month — nearly triple the 0.5% consensus forecast — pushing annual PPI to 6%. Core PPI, stripping out food and energy, climbed 1% on the month and 5.2% year-over-year, both well above estimates.

The print lands just a day after April CPI came in at 3.8% year-over-year, the hottest consumer inflation reading in nearly three years. Together, the two reports signal that inflation is reaccelerating, not cooling — a direct threat to any near-term Fed easing narrative. Bitcoin, which had been trading above $81,000 overnight, dropped sharply on the release before recovering to just above $80,000, down roughly 0.8% on the day. Equity futures were relatively unmoved, with Nasdaq 100 futures up 0.2% and S&P 500 futures near flat.

The…