Bitcoin (BTC) slid 2.5% around Wednesday’s Wall Street open as a fresh US inflation overshoot spooked markets.
Key points:
US PPI inflation surpasses market expectations again, continuing its “hot” 2026 trend.
BTC price pressure results at the Wall Street open, as markets brace for the Federal Reserve interest-rates decision.
Traders see no reason to rethink their bearish stance on Bitcoin.
Fed rates “less supportive” for Bitcoin, crypto
Data from TradingView showed $72,000 coming back into focus for BTC price action after the February print of the Producer Price Index (PPI).
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
This came in markedly above expectations at 0.7% month-on-month and 3.4% year-on-year, extending a trend from recent months. Markets had foreseen 0.3% and 3%, respectively.
“On an unadjusted basis, the index for final demand rose 3.4 percent for the 12 months ended in February, the largest 12- month advance since increasing 3.4 percent in February 2025,” an official statement from the US Bureau of Labor Statistics (BLS) confirmed.
US PPI one-month % change. Source: BLS
The timing of the release was pertinent, coming just hours before the Federal Reserve was due to release its decision on interest-rate changes.
While markets saw practically no chance of a rate cut or hike, the Federal Open Market Committee (FOMC) meeting could still spark volatility based on the tone of Chair Jerome Powell’s accompanying statement and press conference.
“Macro remains the dominant driver into what is arguably the most important central bank week of the year,” trading company QCP Capital wrote in its latest “Market Color” analysis on the day.
QCP noted that other major central bank rate moves were scheduled for the day after the Fed.
“Markets have sharply pared easing expectations as higher oil prices complicate the path for rate cuts, even as growth and labour data soften,” it continued.
“For crypto, the implication is straightforward: the rates backdrop is becoming less supportive, not more.”Fed target rate probabilities for March 18 FOMC meeting (screenshot). Source: CME…..
