On Wednesday, bitcoin briefly plunged below $79,000 for the first time since May 4 as investors digested the latest producer price index data, which showed a sharp acceleration in wholesale inflation.
Bitcoin briefly plunged below $79,000 for the first time since May 4 as investors digested the latest producer price index (PPI) data, which showed a sharp acceleration in wholesale inflation. According to the cryptocurrency’s daily price chart, bitcoin was coasting above $81,000 before tumbling to an intraday low of $78,704.
Although the cryptocurrency had recovered and was trading just over $79,000 at the time of writing (1:08 p.m. EDT, May 13), it remained down 1% over a 24-hour period, while its market capitalization slipped below $1.6 trillion. Following the latest retreat, bitcoin has shed approximately $3,000 from its May 11 peak of $82,145. The decline began after the Trump administration rejected an Iranian counter-peace proposal.
While global markets await Washington’s next move after President Donald Trump characterized U.S.-Iran relations as being on “life support,” the release of consumer price index (CPI) data showing inflation slightly ahead of projections spooked investors. According to a Bitunix analyst, the latest CPI data indicates that energy-driven price shocks “are once again becoming the dominant force within the U.S. inflation structure, with pressure now spreading into housing, services, and broader consumer sectors.”
