Summary Bitcoin falls below $66,000 after hot U.S. inflation data. Strong PPI reading weakens expectations of Fed rate cuts. Crypto market drops 3% as tech stocks slide. By Yaroslav Dmytrenko Bitcoin ( BTC-USD ) fell below $66,000 on Friday after hotter-than-expected U.S. producer inflation data triggered a broad sell-off in technology stocks. Rate cut hopes fade U.S. macroeconomic data released Friday showed that the Producer Price Index ((PPI)) rose 0.5% month-over-month in January, exceeding expectations of 0.3%. Core PPI, which excludes volatile food and energy prices, increased 0.8% for the month — also well above the 0.3% forecast. The renewed acceleration of inflation at the start of the year further delays potential Federal Reserve rate cuts, whose timing was already uncertain, and intensified the sell-off in major technology stocks. Companies such as Nvidia ( NVDA ), Broadcom ( AVGO ), Micron ( MU ), Salesforce ( CRM ), and Trade Desk ( TTD ) dropped more than 5%, dragging down major indices. The Dow Jones Industrial Average and Nasdaq Composite led losses, each falling 1.1%, while the S&P 500 declined 0.6%. In crypto-related equities, sentiment was further pressured after Jack Dorsey’s Block announced plans to cut 40% of its workforce, citing a strategic shift toward AI -driven operations. Risk asset sell-off hits crypto market Amid these developments, the crypto market initially showed resilience, supported by continued inflows into spot Bitcoin ETFs. Bitcoin hovered around $66,000, while Ethereum ( ETH-USD ) traded near $1,950. Bitcoin 4-hour chart. Source: TradingView However, by the end of the day, BTC extended losses to $65,600 and ETH declined to $1,930. The broader crypto market fell more than 3% over 24 hours, with total market capitalization dropping to $2.26 trillion. Leading altcoins posted relatively moderate losses of 2–3%, and in some cases up to 5%. “Bitcoin’s decline reflects a broader reduction in market risk appetite rather than a crypto-specific crisis. Unless institutional inflows stabilize or macroeconomic concerns ease, downside pressure may persist in the short term,” said analyst Viktoras Karapetyants. Historically, bearish Fridays tend to increase the likelihood of weekend weakness. In this context, a break below $65,500 could trigger a short-term move toward the $62,500–$63,000 range. The RSI may fall below 40, while the MACD remains in bearish territory with expanding histogram bars. A neutral scenario suggests consolidation within the $64,800–$67,500 range, with the MACD staying below the signal line but without strong downside acceleration and the RSI fluctuating around 45–50, indicating balanced buying and selling pressure. However, if buyers defend the $65,500 support level over the weekend, a rebound toward $68,500–$70,000 could materialize early next week — levels Bitcoin failed to firmly reclaim midweek following momentum sparked by Donald Trump’s U.S. economic policy speech. As we wrote, Bitcoin price holds above $67,000 as market enters consolidation phase This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
