Bitcoin sinks 4% to $20,400 as US producer prices show inflation easing

Bitcoin fell 4%, bottoming at $20,400 following news of the U.S. Producer Price Index (PPI) coming in better than expected.

December 2022’s PPI came in at 6.2% year-over-year (YoY,) less than the expected 6.8% rate. The data signaled an easing of inflationary pressure, giving scope for the Fed to slow its current pace of interest rate hikes.

The PPI measures changes in the prices paid by producers and is often taken as an indicator of upcoming consumer price data.

Bitcoin tanks

On the release of PPI data, Bitcoin initially moved higher, reaching $21,650 by 14:15 UTC.

However, an hour later, the leading cryptocurrency suffered a sharp sell-off that found support at $20,400. A strong bounce followed, topping out at $21,140.

Analyst at CryptoSlate

Samuel is a strong believer in individual autonomy and personal freedom. He is a relative newcomer to the world of cryptocurrency, having first bought Bitcoin in early 2017, but keen to make up for the lost time.