Bitcoin sinks 4% to $20,400 as US producer prices show inflation easing Bitcoin sinks 4% to $20,400 as US producer prices show inflation easing
The leading cryptocurrency tanked after news of better than expected producer inflation data.
1 min read
Updated: Jan. 18, 2023 at 7:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin fell 4%, bottoming at $20,400 following news of the U.S. Producer Price Index (PPI) coming in better than expected.
December 2022’s PPI came in at 6.2% year-over-year (YoY,) less than the expected 6.8% rate. The data signaled an easing of inflationary pressure, giving scope for the Fed to slow its current pace of interest rate hikes.
The PPI measures changes in the prices paid by producers and is often taken as an indicator of upcoming consumer price data.
Bitcoin tanks
On the release of PPI data, Bitcoin initially moved higher, reaching $21,650 by 14:15 UTC.
However, an hour later, the leading cryptocurrency suffered a sharp sell-off that found support at $20,400. A strong bounce followed, topping out at $21,140.
Author 
Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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