Bitcoin Retraces to $62,800 as May PPI Hits 6.5%, Highest Since November 2022

Bitcoin retraced from $63,150 toward $62,800 after the May Producer Price Index came in hotter than expected at 6.5% headline inflation, above the 6.4% forecast and the highest level since November 2022. The move reflected trader sensitivity to inflation data, as stronger price pressures increase expectations for tighter Federal Reserve policy.

Bitcoin spot ETFs recorded total net outflows of $214 million following the release. According to Polymarket data, odds of a Federal Reserve rate hike in 2026 rose to nearly 51% after the PPI report, a shift from earlier expectations of potential rate cuts this year.