Bitcoin dropped below $69,000 on Thursday, wiping out approximately one week of price gains within hours as inflation concerns mounted. The selloff was triggered by stronger-than-expected U.S. producer price index data, which rose 0.7% in February compared to economist forecasts of 0.3%.
Core PPI climbed to 3.9% year-over-year, marking its highest level in over a year and signaling persistent inflationary pressures. The unexpected inflation surge raised concerns about Federal Reserve policy direction and potentially delayed rate cuts that crypto markets had been pricing in.