Bitcoin Slides 3% as Hot US PPI Signals Inflation Concerns

• U.S. Producer Price Index (PPI) data for January exceeded forecasts, sparking market reactions.
• Bitcoin faced downward pressure as gold surged amid rising inflation concerns.

On February 27, 2026, Cointelegraph reported a sharp 3% drop in Bitcoin’s price as unexpectedly high U.S. inflation data spurred investor caution across risk assets. Inflation figures came in stronger than anticipated, creating a challenging landscape for speculative markets like cryptocurrencies.

The January PPI climbed 0.5% month-over-month, surpassing the forecasted 0.3% increase. Excluding volatile food and energy prices, core PPI surged by 0.8%, significantly above the anticipated 0.3% rise. These inflationary pressures led to market uncertainty, as investors recalibrated their positions in higher-risk, growth-oriented assets.

Meanwhile, gold emerged as a winner in this environment, with prices hitting one-month highs as traders sought safe-haven investments. The pivot to gold underscored the market's preference for historically stable assets during times of economic unease.

The unexpected spike in inflation dampened hopes for a Federal Reserve interest rate cut in its March meeting. Cointelegraph noted that the likelihood of a rate reduction fell to below 4%, suggesting that the Fed may maintain its restrictive monetary policy. This outlook added to the bearish sentiment surrounding Bitcoin.

Bitcoin’s position remains fragile as it wrestles with a prolonged downtrend, now heading toward its fifth straight month of losses—a streak last seen in 2018. Analysts are closely watching the $65,000 support level, which could play a critical role in determining whether Bitcoin avoids an accelerated decline.

As of February 27, 2026, at 15:08 UTC, Bitcoin (BTC) is trading at $66,141.76, reflecting a 2.09% drop in 24-hour trading volume, according to CoinMarketCap.