Crypto market slides as US PPI revives rate-hike fears

Crypto assets declined after the U.S. Producer Price Index for April rose 6% year over year. Total crypto market capitalization fell to about $2.61 trillion. Bitcoin traded near $79,221, below $80,000, and Toncoin traded around $2.09, roughly 28% below its recent $2.91 peak and down more than 9% on the day.

The April PPI reading reached a three-year high and exceeded the 4.9% consensus estimate. Services accounted for about 60% of the increase. Bond markets reacted by pricing in higher odds of tighter monetary policy, and traders shifted away from higher-volatility positions.

The U.S. Senate confirmed Kevin Warsh as Federal Reserve Chair in a 54-45 vote. Jerome Powell’s term ends Friday. The confirmation came as hotter inflation readings arrived.

Total crypto market capitalization was about 2.6% below yesterday’s peak after a rejection near $2.72 trillion earlier this month. Market data show the overall cap is testing a 0.236 Fibonacci support near $2.60 trillion. A sustained break below that level would expose lower technical support around $2.53 trillion and $2.47 trillion.

Bitcoin was about 2.5% lower on the day and roughly 4% below a recent $82,742 channel high. Price action moved bitcoin toward the middle of an ascending channel that began in late February. Short-term support levels include a 0.236 Fibonacci level near $77,979 and a 0.382 level near $75,033.

U.S. spot bitcoin exchange-traded funds recorded combined net outflows of about $635 million on May 13, with one fund reporting roughly $285 million in withdrawals, according to market-flow data.

Toncoin earlier rallied about 124% on the launch of the Acton toolchain before the recent decline. Current technical levels place immediate support near $2.08, with a 20-day exponential moving average around $1.97 and a 0.618 Fibonacci cluster near $1.88. Chart indicators note a possible golden cross if the 50-day moving average crosses above the 200-day moving average.

Producer prices measure inflation at the wholesale level and can influence consumer inflation trends and monetary policy. Higher readings typically raise expectations for interest rates, which can reduce demand for riskier assets.