Bitcoin Price Takes Hit as PPI Data and Powell's Speech Spark Market Volatility

Bitcoin's price has been on a downward trend after the release of hotter-than-expected US PPI data and Jerome Powell's Federal Reserve speech. The inflation data came in higher than expected, with core PPI rising to 3.9% and headline PPI surging to 3.4%. This has led to lower risk appetite among investors, causing Bitcoin's price to fall by over 5%.

The broader crypto market also declined, with a total market cap drop of 3.8% to $2.51 trillion. Major crypto assets such as Ethereum, XRP, Solana, and Dogecoin mirrored Bitcoin's move. The sharp drop in Bitcoin's price triggered a liquidation cascade across leveraged markets, with $382 million in long positions being liquidated.

Despite the bearish sentiment, technical indicators suggest that a potential rebound may be underway. The Supertrend indicator has flashed green, indicating a shift from bearish to bullish trend. However, if Bitcoin falls below the $70,000 support, a revisit to $65,000 and subsequently to $60,000 becomes a possibility.