Hot U.S. PPI Sparks Rate-Fear Selloff in Crypto

April’s U.S. Producer Price Index rose 6.0% year over year, the largest increase in three years. Services accounted for roughly 60% of the rise. Bond traders priced in renewed odds of a rate hike or delayed rate cuts by the Federal Reserve.

The U.S. Senate confirmed Kevin Warsh as Federal Reserve chair in a 54–45 vote, the narrowest margin on record for such a confirmation. Jerome Powell’s term at the Fed is scheduled to end Friday.

Crypto markets fell after the report. Total crypto market capitalization declined to $2.61 trillion, about 2.6% below yesterday’s peak and below an earlier $2.72 trillion ceiling this month. Chart levels show the market is near the 0.236 Fibonacci support at about $2.60 trillion; the 0.382 level is near $2.53 trillion and the 0.5 level near $2.47 trillion.

Bitcoin traded around $79,221, down about 2.5% on the day and roughly 4% below a recent channel high of $82,742. The 0.236 Fibonacci support for Bitcoin sits near $77,979 and the 0.382 level near $75,033. Selling volume increased. U.S. spot Bitcoin exchange-traded funds recorded total net outflows of about $635 million on May 13, led by IBIT with roughly $285 million in redemptions.

Toncoin traded around $2.09, down more than 9% on the day and about 28% below its $2.91 peak after a 124% rally tied to the Acton toolchain launch. Price remained near a $2.08 support level. The 20-day exponential moving average is near $1.97 and the 0.618 Fibonacci cluster is around $1.88. Trading volume declined compared with the surge that preceded the run-up. A golden cross pattern, where the 50-day EMA crosses above the 200-day EMA, is visible on the daily chart.

The inflation print, shifting rate expectations and ETF outflows coincided with reduced demand for higher-beta crypto assets. Market participants will watch upcoming economic reports and central bank communications for further direction.