BTC Stays Under $70K Mark While Equities Decline Following Lower-Than-Expected US PPI Data
The leading cryptocurrency experienced a roughly 4% decline throughout the trading session as markets responded cautiously to the October US Producer Price Index, which registered below forecast figures.
The price of Bitcoin (BTC) remained near the $68,700 level after the opening bell on Wall Street Friday, recovering from a session low that had touched approximately $67,500 earlier in the day.
Key points:
- Bitcoin was unable to recover the $70,000 threshold following Friday's decline to approximately $67,500, representing the lowest price point since the middle of August.
- October's US Producer Price Index (PPI) registered a 6.5% year-over-year increase, coming in 0.1 percentage points under market forecasts while still representing the most significant yearly gain recorded since November 2022.
- Analyst Rekt Capital issued a caution that should Bitcoin close the week beneath $73,000, it would represent the third instance of breaking through that support threshold during 2026.
US PPI registers most significant annual increase since late 2022
Information from TradingView indicated BTC/USD posted a 4% daily loss following a recovery from approximately $67,500, marking a low not witnessed in roughly 12 weeks.
October's US Producer Price Index, an economic indicator that measures price changes received by domestic producers for their output of goods and services, climbed 0.3% on a monthly basis and 6.5% year over year. Each reading came in 0.1 percentage points beneath what markets had anticipated, though the yearly figure marked the highest increase observed since November 2022.
"Leading the October advance in final demand prices, the index for final demand goods increased 0.5 percent. Prices for final demand services moved up 0.2 percent," the US Bureau of Labor Statistics (BLS) reported Friday.
Equity markets displayed minimal positive reaction as US trading commenced, with market participants continuing to digest news surrounding Nvidia following Thursday's resignation of its co-founder and CEO, Jensen Huang.
At the time of publication, the S&P 500 had declined 1.2%, while the technology-focused Nasdaq Composite Index registered a 1.5% decrease.
Following the PPI data release, market expectations for Federal Reserve interest rate increases underwent modest adjustments. The probability of a conservative 25-basis-point increase at the Federal Reserve's December policy meeting climbed from Thursday's 85.4% to 89.7%, whereas the likelihood of a more aggressive 50-basis-point adjustment fell from 14.5% to 10.3%, according to information from CME Group's FedWatch Tool.
Economist Robin Brooks characterized a 25-basis-point rate hike in December as "all but inevitable." Brooks, however, pushed back against implementing a more substantial increase, contending it would prove ineffective against the current inflation catalysts: elevated oil prices stemming from the US-Iran conflict and the possibility of sustained acceleration in core inflation metrics.
"If high inflation is about the Strait of Hormuz and oil, 75 basis points won't do anything about that. If the issue is that the pace of underlying inflation has risen, then 75 basis points is much too timid to get this under control."
Bitcoin faces potential repeat of support breakdown that triggered $60,000 decline
Cryptocurrency analyst and trader Rekt Capital issued a warning that should BTC close beneath $73,000 when Sunday's weekly candle closes, it would represent a support level breakdown that has already occurred twice in 2026.
"Last week's Weekly Candle Closed below 3 Weekly levels," he wrote on X, pointing to the $75,000, $76,800 and $78,300 price points. "This Weekly Candle looks set to do something similar. Which is testament to sell-side momentum still gaining and the bears being in control."
Following the two previous instances of these breakdowns occurring, Bitcoin's price subsequently dropped to the vicinity of $60,000.
Trading at $68,700, BTC/USD has registered a 17.7% decline for the fourth quarter and an 11.2% loss for the current month. The quarterly performance currently ranks as Bitcoin's second-worst quarterly showing in its history, according to data confirmed by CoinGlass.
