Bitcoin Price Crashes to $70,000 Support Amid US PPI Data and Powell's Hawkish Remarks

Bitcoin's price crashed by over 5% on Thursday as the cryptocurrency dropped to its critical $70,000 support level. The decline was triggered by hotter-than-expected US PPI data and Jerome Powell's Federal Reserve speech, which cast a shadow over interest rate cuts for this year.

The US PPI data came in higher than expected, with core PPI rising to 3.9% and headline PPI surging to 3.4%. This reading typically signals that wholesale inflation is not cooling as fast as hoped, potentially leading to higher consumer prices. Investors were already cautious ahead of Powell's speech, and the hotter-than-expected data hit sentiment harder.

Powell reiterated in his speech that the Fed would continue to hold interest rates steady while maintaining a strictly data-dependent approach. He attributed this to rising energy prices resulting from Middle East tensions, which have kept inflation elevated. The market had already expected a pause, but the recent back-to-back hawkish signals rattled investors.