Bitcoin holds below $70K as stocks slip despite a cooler US PPI print

1 day ago

Bitcoin (BTC) hovered astir $68,700 pursuing Friday’s Wall Street open, rebounding from an earlier dip to astir $67,500.

Key points:

Bitcoin failed to reclaim the $70,000 people aft hitting astir $67,500 connected Friday, its lowest level since mid-August.
The US Producer Price Index (PPI) roseate 6.5% twelvemonth implicit twelvemonth successful October, 0.1 percent points beneath expectations but inactive the largest summation since November 2022.
Rekt Capital warned that a play adjacent beneath $73,000 could people Bitcoin’s 3rd interruption of that enactment level successful 2026.

US PPI sees largest yearly summation since Q4 2022

Data from TradingView showed BTC/USD down 4% connected the time aft bouncing from a astir 12-week debased adjacent $67,500.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The US Producer Price Index, which tracks changes successful the prices home producers person for their goods and services, roseate 0.3% period implicit period and 6.5% twelvemonth implicit twelvemonth successful October. Both readings were 0.1 percent points beneath marketplace expectations but the yearly summation was the largest since November 2022.

“Leading the October beforehand successful last request prices, the scale for last request goods accrued 0.5 percent. Prices for last request services moved up 0.2 percent,” the US Bureau of Labor Statistics (BLS) reported Friday.

US PPI one-month percent change. Source: BLS

Stocks showed small motion of alleviation astatine the commencement of the US trading session, with traders inactive parsing developments astir Nvidia aft its co-founder and CEO, Jensen Huang, resigned connected Thursday.

The S&P 500 was down 1.2% astatine the clip of writing, portion the tech-heavy Nasdaq Composite Index was 1.5% lower.

Nasdaq Composite Index one-day chart. Source: Cointelegraph/TradingView

The PPI merchandise led markets to somewhat set expectations for Federal Reserve complaint hikes. Odds of a minimal 25-basis-point hike astatine the Fed’s December gathering roseate from 85.4% connected Thursday to 89.7%, portion likelihood of a larger 50-basis-point determination decreased from 14.5% to 10.3%, per information from CME Group’s FedWatch Tool.

Fed target-rate probability examination for the December FOMC meeting. Source: CME Group

Economist Robin Brooks described a 25-basis-point hike successful December arsenic “all but inevitable.” He argued, however, against a steeper increase, seeing it arsenic ineffective successful the look of current ostentation drivers: the oil-price spike from the US-Iran warfare and imaginable semipermanent acceleration successful underlying inflation.

“If precocious ostentation is astir the Strait of Hormuz and oil, 75 ground points won’t bash thing astir that. If the contented is that the gait of underlying ostentation has risen, past 75 ground points is overmuch excessively timid to get this nether control,” helium wrote.

Bitcoin eyes repetition of breakdown that preceded $60,000 drop

Crypto trader and expert Rekt Capital warned that a BTC adjacent beneath $73,000 connected Sunday would people a enactment breakdown already seen successful 2026.

“Last week’s Weekly Candle Closed beneath 3 Weekly levels,” helium wrote connected X, referring to $75,000, $76,800 and $78,300. “This Weekly Candle looks acceptable to bash thing similar. Which is testament to sell-side momentum inactive gaining and the bears being successful control.”

After each of the 2 erstwhile breakdowns, Bitcoin fell to astir $60,000.

BTC/USD one-week chart. Source: Rekt Capital connected X.com

At $68,700, BTC/USD is down 17.7% successful the 4th fourth and 11.2% period to date. The quarterly show is presently Bitcoin’s 2nd worst connected record, information from CoinGlass confirms.