Bitcoin Price Drops Below $80,000 as US PPI Rises 1.4% in April

• The US Producer Price Index for April 2026 increased by 1.4%, according to reports.
• It is the highest increase in the US PPI since rising 1.7% in March 2022.
• Bitcoin’s price declined below $80,000 following the US PPI announcement.

The US Bureau of Labour Statistics released the Producer Price Index (PPI) for April this Wednesday, reflecting a 1.4% increase. It further reported that the April increase is the largest since rising 1.7% in March 2022. Meanwhile, Bitcoin’s price responded by pulling back 1.33% and giving up early gains for the day.

Wednesday’s Bitcoin price pullback means the cryptocurrency entered into a bearish weekly mode, after a seven-week uninterrupted rally. However, with more macroeconomic data expected, the cryptocurrency’s performance for the current week remains under observation, as traders await clear signals for BTC’s next phase.

What Rising PPI Means for Bitcoin

The Bureau’s report further attributed nearly 60% of the April rise in final prices to a 1.2% advance in the index for final demand services. It also revealed that prices for final demand goods increased by 2.0% and the index for final demand less foods, energy, and trade services increased by 0.6%, the largest advance since rising 0.6% in October 2025.

Typically, an increase in the US PPI exerts pressure on Bitcoin’s price. Therefore, the pullback experienced by BTC in the wake of the Bureau’s report does not surprise crypto community members. The economic indicator signals persistent inflation, which typically triggers hawkish Federal Reserve monetary policy and a stronger US Dollar.

For context, PPI figures can trigger a ripple effect across different sectors of the economy, with overall consequences to public spending and investment in risk assets. For instance, rising PPI leads producers to pass the higher costs to consumers. It serves as a leading indicator for a higher Consumer Price Index (CPI).

How Would Investors React?

Additionally, persistent inflation caused by rising PPI forces the Federal Reserve to maintain high interest rates, reducing overall capital liquidity in global financial markets. This leads investors to abandon speculative, non-yielding assets like Bitcoin for safer, yield-bearing alternatives.

TradingView’s data reveal that Bitcoin has come under pressure since the Bureau’s US PPI release, reflecting a 4-hour continuous price decline as of the time of writing. The cryptocurrency has slipped below the $80,000 landmark, trading at $79,706 at the time of writing.

Optimists expect a rebound after a temporary decline. However, BTC’s immediate future depends on related economic data expected to be released in the coming days, and the outcome of the upcoming CLARITY Act decision by the US Senate.

Related: US PPI Generates Shockwave as 3.3% Annual Rise Triggers Market Meltdown, Over $500 Million in Crypto Longs Liquidated