The price of Bitcoin paused its early-week bullish momentum on Wednesday, falling 3.4% to around $70,900, in line with a broader sell-off across equity markets in the United States.
The correction followed a hotter-than-expected Producer Price Index (PPI) report, which came in at 0.7%, exceeding the 3.4% year-over-year estimate. The data increased pressure on risk assets and triggered profit-taking across crypto markets. Even so, spot demand for Bitcoin remained steady, with buyers stepping in to absorb selling pressure.
The asset later reclaimed the $72,000 level after minutes from the Federal Reserve confirmed its decision to keep interest rates unchanged. Although market participants had largely anticipated the pause, volatility in oil prices, equities, and geopolitical tensions involving the United States, Israel, and Iran kept traders cautious.
Before the recent drop, on-chain data already showed rising sell-side pressure from short-term holders. More than 48,000 BTC in profit moved to exchanges in a single day as the price approached $75,000, indicating that some market participants used the rally to exit positions.
Despite that selling activity, market data shows that buy orders absorbed the drop from $74,000 to $71,000, mirroring patterns seen over the past two weeks where demand at lower levels preceded short-term recoveries.
Source: Reports related to the Federal Reserve.
Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets involve risk and high volatility.
