Bitcoin fell about 2.5% around Wednesday’s Wall Street open, sliding to week-to-date lows near $71,305 as a hotter-than-expected US inflation print landed hours before the Federal Reserve’s FOMC decision.
Price action hits week lows
BTC traded around $71,400 after revisiting the $72,000 level, with traders pointing to macro uncertainty as the dominant driver.
The move came as markets positioned for the Fed’s interest-rate decision and Chair Jerome Powell’s press conference.
PPI overshoots expectations
February Producer Price Index (PPI) rose 0.7% month-on-month and 3.4% year-on-year.
Markets had expected 0.3% and 3.0%, respectively.
The US Bureau of Labor Statistics said:
“On an unadjusted basis, the index for final demand rose 3.4 percent for the 12 months ended in February, the largest 12- month advance since increasing 3.4 percent in February 2025.”
Traders brace for Powell tone
QCP Capital argued that even without a rate change, messaging could drive volatility.
The firm wrote:
“For crypto, the implication is straightforward: the rates backdrop is becoming less supportive, not more.”
Risk-off positioning into FOMC
Trader Jelle said on X:
“$BTC hovering below weekly resistance; FOMC later today - I think caution pays here.”
Analyst Roman described the setup as a bear-flag retest, while Michaël van de Poppe remained constructive, saying he still saw a path back toward $80,000 but wouldn’t be surprised to revisit range lows.
