Rising wholesale inflation is complicating Bitcoin's identity as an inflation hedge, with Thursday's Producer Price Index data triggering a price decline rather than a rally. May's PPI climbed 1.1% month-on-month, pushing the annual rate to 6.5% — the highest since November 2022 and well above the 0.7% consensus estimate. The pattern has repeated throughout the past year: each hot inflation print has pressured Bitcoin downward, suggesting markets currently treat it as a risk asset rather than a store of value during inflationary periods. Elevated wholesale prices typically signal persistent consumer inflation ahead, increasing the likelihood that the Federal Reserve will maintain or tighten its monetary policy stance, which historically weighs on speculative and risk-sensitive assets including cryptocurrencies.
— Sponsored —
Trade smarter on BYDFI
Get a bonus on your first deposit — from $50 at $100, up to $2,000 at $20k. 200x leverage, 600+ perpetuals, deep liquidity.