US producer price inflation for February came in hotter than expected, with headline PPI rising 3.4% year over year versus a 2.9% forecast. On a monthly basis, producer prices increased 0.7%, more than double the original estimate. The release hit risk assets quickly, and Bitcoin fell to about $70,904 on March 19, down 4.72% over the past 24 hours.
Core wholesale inflation reaches the highest level since early 2023
The core PPI reading, which excludes food and energy, climbed to 3.9% from a year earlier. According to the source material, that marks the highest level for core wholesale prices since early 2023. Producer inflation matters because higher business costs can eventually feed into consumer prices. The report said service fees, along with rising prices for basic goods such as vegetables and eggs, were the main drivers behind the move.
Bitcoin drops 4.72% while the broader crypto market loses more than 2%
The reaction in digital assets was broad rather than isolated. Bitcoin remained up 1.87% over the last seven days, but the daily decline shifted attention back to short-term support near $70,000. Its market capitalization still stood at roughly $1.41 trillion. Across the wider crypto market, prices fell by more than 2% on the day as traders reassessed inflation risk and interest-rate expectations.
The source also pointed to tensions in the Middle East as an added concern. An attack on gas fields in Iran pushed oil prices higher, raising worries that energy costs could show up in the next inflation report.
Fed keeps rates unchanged and rate-cut expectations move out
After the February PPI release, the Federal Reserve kept its benchmark interest rate unchanged at 3.5% to 3.75%. Officials cited concern about renewed inflationary pressure linked to elevated energy costs and global supply chain issues. That shift fed straight into market pricing. Earlier in the year, many traders had expected rate cuts by summer; now, the probability of zero rate cuts in 2026 has risen to 25%, and most participants see September as the earliest possible timing for a cut.
PCE inflation data is now the next macro trigger
The analysis in the source described the current backdrop as structural inflation rather than a brief spike. For crypto, that keeps macro data at the center of price action. The next major release in focus is the PCE price index, the Fed’s preferred inflation gauge. If that reading also comes in strong, pressure on rate-cut expectations and risk assets may continue.