Bitcoin fell further after stronger-than-expected U.S. inflation data reduced the likelihood of interest rate cuts, prompting investors to seek safe havens such as gold and silver.
TradingView data revealed that Bitcoin (BTC) had recorded a decline of 2.5% on Bitstamp. This came as new economic data indicated that inflationary pressures in the US were still a concern.
Source: TradingView
The January Producer Price Index, announced by the Bureau of Labor Statistics (BLS), increased by 0.5%. This is beyond the projected increase of 0.3%. The core PPI, which excludes food and energy, increased by 0.8%, well above the projected increase of 0.3%.
Source: BLS
The increase, according to the BLS, is attributed to a 0.8% increase in final demand services, while goods prices fell by 0.3%, as stated in an official statement.
The higher inflation figure indicated that inflationary pressures are still high, making the path to monetary policy easing more difficult for the Federal Reserve. This led to a decline in expectations for a rate cut at the Fed’s meeting in March. According to data from the CME Group’s FedWatch Tool, the probability of a rate cut fell below 4% as market players became more cautious.
Source: CME Group
Meanwhile, gold and other precious metals rose higher. Gold rose above $5,200 an ounce, a level not seen since late January, while silver rose to $92, another multi-week high. This was a clear indicator of investors moving to safe assets considered to be of value when the economy was experiencing uncertainty.
Also Read | Axiom Exchange Faces Insider Trading Claims Following ZachXBT Investigation
Bitcoin is currently at a crucial close, with the price movements monitored with significant interest. On February 27, 2026, crypto analyst Michaël van de Poppe indicated that Bitcoin needs to hold the $65,000 level to avoid a further correction.
Source: X
He noted that the cryptocurrency could create a higher low and potentially reverse the trend by holding the current support.
However, a fall below that zone could increase the probability of further declines, as was witnessed in early February when BTC/USD touched 15-month lows around $59,000.
On the positive side, the key resistance levels are still in focus, such as the 200-week exponential moving average and the old high at $69,000. These levels would have to be recaptured in order to regain the positive momentum.
As of the time of writing, the BTC/USD pair is down by close to 17% month-to-date. As per the data provided by CoinGlass, Bitcoin is likely to close its fifth consecutive month in the red, a phenomenon not witnessed since 2018.
Source: CoinGlass
With inflation running hotter than anticipated and rate cut expectations diminishing, Bitcoin’s short-term direction may significantly depend on its ability to close the month and hold on to its support levels.
Also Read | Jane Street Faces Online Scrutiny as Bitcoin Manipulation Claims Resurface
