🚹 BITCOIN UNDER PRESSURE: PRODUCER INFLATION SURGES TO 6.3%

U.S. producer inflation came in significantly hotter than expected, adding to concerns that inflation remains stubborn.

📈 Headline PPI: 6.3% vs. 5.4% expected
📈 Core PPI: 5.0% vs. 4.4% expected

Following hotter-than-expected CPI, this adds another layer of uncertainty for the Federal Reserve. Markets may need to reassess how long interest rates will remain restrictive.

But a hot inflation report doesn’t automatically mean another Fed rate hike. What matters now is how markets react.

📉 BEARISH SCENARIO: If Treasury yields and the dollar strengthen while BTC breaks below $80K with accelerating selling, the risk of further downside increases.

⚠ POTENTIAL BEAR TRAP: If BTC holds despite the inflation shock and the dollar fails to regain momentum, a short-term recovery could follow as the negative news gets absorbed.

🔎 KEY LEVELS & SIGNALS TO WATCH:
‱ BTC: Can the $80K level hold?
‱ DXY: Does the dollar recover after its rejection near 102.9?
‱ Treasury yields: Do they move higher as markets reassess the Fed’s path?
‱ Volume: Is selling pressure accelerating or fading?

MY TAKE: The short-term risk remains tilted to the downside, but confirmation matters. If BTC continues falling while the dollar remains weak, crypto-specific selling and liquidations may be contributing to the pressure.

Don’t assume the next move. Watch the price reaction, not just the headlines.

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