Crypto Journalist
Anas Hassan
Crypto Journalist
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November PPI data shows producer price inflation surging to 3.0% year-over-year, significantly above the 2.7% forecast and marking the highest reading since July 2025.
Bitcoin is holding around $95,000 as the upside surprise reinforces concerns about sticky inflation pressuring the Fed’s ability to cut rates aggressively in 2026.
Monthly PPI came in at 0.2% as expected, but the annual acceleration to 3.0% signals producer-level price pressures remain elevated and could eventually pass through to consumer prices.
The PPI surprise matters because producer prices are a leading indicator for consumer inflation—higher wholesale costs typically flow through to retail prices with a lag.
With yesterday’s December CPI already showing headline inflation stuck at 2.7% and core at 2.6%, both well above the Fed’s 2% target, today’s hot PPI reading suggests the inflation pipeline remains clogged.
The combination of elevated producer prices and stubborn consumer inflation creates the exact “higher for longer” scenario Powell warned about, where the Fed keeps rates at 3.50%-3.75% through at least Q1 2026 rather than delivering the aggressive easing crypto markets priced in earlier.
Bitcoin’s technical setup remains under pressure with support at $88,000-$90,000 and resistance at $92,000. As it stands now, traders digest whether the PPI shock forces the Fed to reconsider even its reduced two-cut guidance for 2026.
Any break below $90,000 support again could trigger another leg down toward November’s $88,500 low, while a sustained hold above $95,000 suggests the market has fully priced in the Fed’s cautious stance.
PPI Shock: Producer Prices Hit 7-Month High – Bitcoin to Rally Next?
