Bitcoin, Ethereum Slip on Inflation Surprise as Oil Prices Jump
Bitcoin’s price fell by 5% to around $71,135, alongside declines in U.S. stock indexes, as investors reacted to a higher-than-expected Producer Price Index (PPI) and escalating tensions between the U.S. and Iran. The PPI rose 3.4% year-over-year in February, outpacing forecasts, raising concerns about sustained inflation due to higher energy costs. Ethereum and Solana also dropped by 7% and 6%, respectively. Brent crude oil prices surged over 5% after reports of attacks on Iran’s South Pars gas field. The S&P 500, Nasdaq, and Dow Jones all recorded losses, with the Dow falling by 300 points. Elevated energy prices may pressure the Federal Reserve to keep interest rates higher for longer, which could negatively impact crypto markets, as lower rates generally favor riskier assets. Despite this, crypto performance since the U.S.-Iran conflict has held up relatively well. The Fed is expected to maintain interest rates at 3.5% to 3.75%, with markets anticipating no cuts for the rest of the year. President Trump intensified rhetoric on Iran and criticized the Fed for not lowering rates.
