coverage endedMay 13, 2026, 9:00 PMLive markets: Bitcoin dips below $80,000 as producer price inflation surges to 6%U.S. PPI surged well above forecasts in April, reviving concerns that rising oil prices and Iran-related supply risks may feed another inflation wave.Inflation (Markus Winkler/Unsplash)Bitcoin ends U.S. trading day below $80,000Bitcoin ended the U.S. trading day below $80,000 after a hotter-than-expected producer price index (PPI) report raised concerns that inflation could remain sticky, delaying interest-rate cuts from the Federal Reserve. The move added pressure across digital assets and crypto-linked equities, extending a weak stretch for risk assets as traders reassessed expectations for monetary policy.Crypto stocks closed lower across the board. Coinbase (COIN), Robinhood (HOOD), Bullish (BLSH) and Gemini (GEMI) all finished the session in the red as investors reacted to slowing trading activity and renewed macroeconomic pressure. The declines followed a broader selloff earlier this week after several crypto firms reported softer first-quarter results tied to lower digital asset prices and weaker transaction volumes.eToro was among the biggest movers of the day, climbing more than 9% after the trading platform reiterated its commitment to crypto despite weaker first-quarter activity that had sent shares sharply lower on Tuesday. The company said it continues to view digital assets as a core part of its long-term growth strategy.Bitcoin miners saw mixed trading. Core Scientific (CORZ) and Cipher Mining (CIFR) both gained more than 5%, outperforming the broader crypto equity market.In Washington, Kevin Warsh was confirmed as Federal Reserve chair in a 54-45 Senate vote, putting him in charge of the central bank as the White House continues to call for lower interest rates. His appointment comes as stronger inflation data clouds expectations for rate cuts and keeps pressure on risk assets, including crypto.On Capitol Hill, the Senate Banking Committee is set to debate amendments to the crypto market structure bill this week. Most proposals are viewed as unlikely to make it into the final version of the Clarity Act, which is still expected to move forward through committee.Arthur Hayes is buying 'the dips,' sees bond yield pressure pushing Trump toward China dealTraders are closely watching developments out of Beijing, where President Donald Trump arrived for a state visit alongside a group of prominent U.S. executives, including Tesla’s Elon Musk, Nvidia’s Jensen Huang and Apple’s Tim Cook.Trump is expected to meet Chinese President Xi Jinping to discuss trade relations and the ongoing Iran conflict, both key drivers of market sentiment over the past months.At the same time, this week’s hotter-than-expected inflation readings continued to ripple through bond markets. The yield on the 10-year U.S. Treasury climbed to near 4.5%, its highest level since July, as investors reassessed the outlook for Federal Reserve policy.The spike in bond yields could quickly become a concern for equity markets, and might pressure Trump to make a deal with China, said Arthur Hayes, BitMEX co-founder and Maelstrom CIO."IMO spiking 10yr TSY yields will force Trump to bring home a deal with China otherwise the wheels are going to fall off TradFi markets," Hayes wrote in an X post, adding that he was "buying dips."The crypto investor earlier argued in an essay that bitcoin bottomed near $60,000 earlier this year and is poised to surpass its prior record.Bitcoin slides further while crypto-linked stocks bounce from session lowsCrypto stocks best and worst performers on May 13 (CoinDesk)While crypto prices slid further during the morning session, with bitcoin (BTC) slipping below $79,000, several digital asset-related stocks bounced from their lows by midday.Stablecoin issuer Circle (CRCL) reversed earlier losses to trade nearly 3% higher. Digital broker eToro rebounded 6.8% after yesterday's sell-off on reporting a sharp decline in crypto trading activity in the first quarter.Coinbase (COIN) recovered toward the $201 level, though shares remained down about 3% on the day. Bullish (BLSH), CoinDesk’s parent company, pared its decline to roughly 2.6%.Data center names, many of them former bitcoin miners that pivoted to AI infrastructure, traded higher, including Cipher Mining (CIFR) and Core Scientific (CORZ)Elsewhere, bitcoin treasury firm Strategy (MSTR) traded 2.9% lower, while Ethereum treasury company Bitmine (BMNR) cut its losses to around 1.1%.The stabilization came as markets digested the hotter-than-expected inflation report earlier in the day. The tech-heavy Nasdaq 100 rose 0.5%, while the S&P 500 gained 0.3%.Attention across the crypto industry is increasingly turning toward Washington, D.C., where the Senate Banking Committee is set to hold a markup hearing Thursday on the long-awaited digital asset market structure bill, the Clarity Act. The hearing marks a key step in advancing the legislation toward becoming law.Inflation shock may represent the 'final flush of weak hands'Matt Mena, senior crypto research strategist at 21Shares, said the inflation data reflects mounting macro pressure, partly tied to the conflict in Iran, but noted that bitcoin’s ability to hold above $80,000 remains an important signal for traders.Mena said a prolonged break below $80,000 could send bitcoin toward $78,000, with $75,000 becoming the next major support zone if selling intensifies. Still, he argued the latest inflation shock may represent the “final flush of weak hands” before several potential bullish catalysts return to focus.He added that improving macro conditions tied to President Donald Trump’s upcoming China visit could also help lift sentiment if tensions ease. Mena said bitcoin reclaiming the $82,000 resistance level could open the door to a rally toward $85,000 and potentially $90,000, while leaving a move toward $100,000 “on the table” by the end of the quarter.U.S. producer prices for April came in far hotter than expected on Wednesday, complicating the Federal Reserve's path forward to ease monetary policy later this year.The April Producer Price Index rose 1.4% month-over-month, nearly triple economists’ expectations for a 0.5% increase. Annual producer inflation accelerated to 6%, while core PPI excluding food and energy climbed 1% on the month and 5.2% year-over-year, both well above forecasts.The report reinforced that inflation is reaccelerating after Tuesday's consumer price index (CPI) rose 3.8% year-over-year, the hottest inflation reading in almost three years.Bitcoin (BTC), which traded above $81,000 overnight, quickly dropped below the key $80,000 level in the minutes following the release before recovering slightly. The largest cryptocurrency was recently changing hands just above $80,000, down about 0.8% over the past 24 hours.Equity futures held relatively steady ahead of the U.S. open, with Nasdaq 100 futures up 0.2% and S&P 500 futures little changed.The inflation surprise adds another layer of uncertainty for the Fed as policymakers navigate rising energy prices tied to the ongoing Iran conflict and persistent concerns over supply disruptions around the Strait of Hormuz. Higher oil prices risk feeding further into inflation data in the months ahead.The report could also revive discussion of whether the central bank may need to consider additional tightening rather than cuts, even as President Donald Trump continues to pressure the Fed to lower interest rates.That backdrop is especially delicate as Kevin Warsh prepares to take over leadership of the central bank, with investors closely watching how the incoming chair will balance slowing growth risks against resurgent inflation pressures.12345678910