Bitcoin retraced toward $62,800 after recovering to approximately $63,150, following the release of U.S. May Producer Price Index data showing headline inflation at 6.5%. The May PPI report exceeded the 6.4% forecast and marked the highest level since November 2022, prompting traders to reassess interest rate expectations. The price movement reflected ongoing market sensitivity to inflation data, as stronger producer price pressures can influence Federal Reserve monetary policy decisions and reduce liquidity conditions for risk assets.
May PPI Report Shows Headline Inflation at 6.5%
The May PPI report showed headline producer inflation rising to 6.5%, above expectations of 6.4% and the highest level since November 2022. Core PPI inflation came in at 4.9%, in line with April's revised level. Producer prices rose 1.1% in May after a revised 1.1% increase in April, creating back-to-back monthly increases.
Bitcoin initially dipped by approximately 0.5% after the data release and later stabilized near the $62,800 area. The PPI report measures wholesale inflation, making it an important signal for future consumer prices. Market participants focused on the headline number because it reached its highest level since November 2022.
Fed Rate Hike Odds Rise After PPI Data
According to Polymarket, the odds of a Fed rate hike in 2026 rose to nearly 51% after the PPI data release. The headline PPI reading was above expectations, but the core measure was steadier. Core PPI, which excludes food and energy, came in at 4.9%, matching April's revised level.
Higher rates usually reduce liquidity and make risk assets less attractive compared with cash and bonds. The mix of data suggests that energy-related pressure remains a key factor, while broader price pass-through may be partly absorbed by business margins.
Bitcoin Trades Within $61,000 to $63,000 Technical Range
Bitcoin is trading inside a narrow technical range, with resistance near $63,000 and support near $61,000. Traders are watching a symmetrical triangle pattern on the BTC chart. A breakout above $63,000 could open the way toward liquidity between $64,000 and $66,500, where short positions may be vulnerable. A breakdown below $61,000 would shift attention back toward the $58,000 to $60,000 zone, where long-side liquidity is concentrated.
Bitcoin spot ETFs recorded total net outflows of $214 million. Grayscale Bitcoin Mini Trust ETF BTC posted the largest single-day net inflow at $17.5167 million, but the broader ETF flow remained negative.
FAQ
What was the May PPI headline inflation rate?
The May PPI headline inflation rate was 6.5%, above the 6.4% forecast and the highest level since November 2022. Core PPI inflation came in at 4.9%, matching April's revised level.
How did Bitcoin react to the May PPI report?
Bitcoin recovered to approximately $63,150 before retracing toward $62,800 after the May PPI data release. BTC initially dipped by about 0.5% and later stabilized near the $62,800 area.
What are the current Bitcoin technical support and resistance levels?
Bitcoin is trading with resistance near $63,000 and support near $61,000. A breakout above $63,000 could target liquidity between $64,000 and $66,500, while a breakdown below $61,000 would shift focus to the $58,000 to $60,000 zone.
