Bitcoin drops 3% as inflation hots up again, and a quiet services spike just changed the rate cut story

Bitcoin fell 3% following higher-than-expected January producer price index (PPI) data, which exceeded forecasts and signals continued inflationary pressures. The inflation uptick, particularly in services, is reshaping expectations for Federal Reserve rate cuts and could influence crypto pricing patterns through the next PPI release on March 18.

• →Bitcoin dropped 3% after January PPI data came in above consensus forecasts
• →Higher-than-expected producer inflation is affecting Federal Reserve rate cut expectations
• →Services sector showed a notable spike in inflation that could impact monetary policy
• →Rate expectations are likely to be a key driver of crypto pricing in the near term
• →The next important macro data point is the March 18 PPI release