Bitcoin has fallen back toward $62,500 after U.S. producer inflation accelerated beyond expectations, adding fresh uncertainty ahead of the Federal Reserve's June policy meeting. According to WazirX Market Desk, Bitcoin's RSI sits at 23.47, marking one of the most oversold readings since March 2020, with daily technicals firmly in the sell zone. The cryptocurrency continues trading below all key moving averages, with immediate support resting at $60,200 to $60,500 and resistance in the $64,000 to $64,300 band. A softer inflation reading could help Bitcoin regain momentum toward $65,000, while a hotter-than-expected print may increase pressure and push BTC back toward the $59,000 support zone.
The latest inflation data has created significant headwinds for Bitcoin as markets reassess Federal Reserve policy expectations. U.S. producer inflation jumped 1.1% in May, pushing annual PPI to 6.5% and well above Wall Street forecasts for a 0.7% monthly increase. The report also showed Core PPI increased 0.4% compared with forecasts for a 0.5% gain, with analyst expectations of 6.4% exceeded. Clearly, these numbers, like CPI yesterday, are far from the inflation target rate of 2% the Fed aspires to, as reported by Investing.com. Minutes after the data release, Bitcoin surrendered part of its earlier advance and slipped back toward the $62,500 area after briefly trading above $63,000. The move triggered a sharp red candle on the 15-minute chart as traders reacted to the stronger-than-expected inflation figures, with crude oil climbing to $90.8 per barrel adding further pressure to risk assets.
Market expectations for Federal Reserve policy have shifted dramatically following the latest inflation data. There are currently no bets left for a Fed rate cut in '26, and bets for a Fed hike are rising, according to Investing.com analysis. The annual number for PPI ex-food/energy/transport rose from +4.4% to +5.1%, while Core CPI (excluding food and energy) was forecast at +0.5% and came in at +0.4%. This leaves the annual number at +4.9%, the same adjusted number for April. The boost in inflation trends is primarily being driven by higher crude oil prices, though today's crude oil prices remain relatively flat after Trump's statements about Iran attacks. The bond market has been surprisingly stable, with the US 2-year Treasury moving up from yesterday's close of 4.12% to 4.15% on the PPI news but then drifting back to flat, while the 10-year moved from 4.54% to 4.55% and is now 4.52%.
Institutional demand has shown a dramatic decline, with Glassnode reporting a 78% drop in spot Bitcoin ETF trading volume from $4.4 billion per day in October 2025 to approximately $960 million per day. The 30-day moving average of U.S. spot Bitcoin ETF trading volume has fallen significantly, while trading volumes among publicly traded Bitcoin treasury companies dropped 49%, according to Glassnode. This represents a structural shift as speculative appetite for Bitcoin exposure through traditional financial channels has largely retreated, with the asset's $0.00000044 Legacy Sale price paired with a contractually backed $0.03 buyout pool failing to attract institutional capital rotation.
Despite the challenging inflation data and Fed policy uncertainty, major indexes remain modestly in the green as the trading day progresses, according to Investing.com. The Russell 2000 is the leading major index up 1.5%, with the Dow +0.6%, the NASDAQ +0.5%, and the S&P +0.3%. Semiconductors are leading gains with memory names up 5% and overall semis +3%, while the VIX, which closed at 22.2 yesterday fell to as low as 20.5, then shot up to 22.6, taking the S&P into the red temporarily. It's a sign of strength given the high inflation data and escalation in Iran, with the AI narrative continuing to support strong earnings outlook. One area of tech that remains weak is software, with Oracle (ORCL) down 11.2% today after guiding to huge capital spending for AI plans, while overall software is down 1.3% today, down 14.7% YTD on AI business model concerns.
