Bitcoin's 3% Decline Linked to Inflation Concerns After January PPI Data

Bitcoin experienced a 3% drop after the release of January's producer price index (PPI) data, which revealed higher-than-expected inflation primarily due to increased service costs and trade margins. According to NS3.AI, this unexpected inflation complicates the prospects for Federal Reserve rate cuts, potentially prolonging the current phase of monetary tightening. The February PPI report has been postponed until March 18, adding to market uncertainty amid conflicting inflation signals between producer and consumer prices.