Bitcoin fell back below the $66,000 level on Friday during early US trading, as rising macroeconomic risks prompted investors to pull back from risk assets.
The largest cryptocurrency was trading near $65,571, down roughly 3% from around $68,000 just hours earlier.
The decline erased most of Wednesday’s surge, when Bitcoin briefly rallied toward the $70,000 mark before retreating.
The broader crypto market also moved lower. Ethereum slipped about 3.4%, underperforming larger-cap peers as selling pressure intensified.
XRP declined roughly 3%, while Solana dropped nearly 3.9%. Cardano fell about 2.3%, and Dogecoin eased around 2.6%.
The price action pointed to broad-based distribution rather than isolated profit-taking in individual tokens.
Hot PPI data dampens rate-cut hopes
The latest pullback followed a hotter-than-expected Producer Price Index report for January, which raised fresh concerns that inflation remains persistent.
Core PPI rose 3.6% year over year, exceeding the 3.0% estimate and accelerating from 3.3% previously.
The stronger-than-anticipated reading undercut expectations for continued disinflation and prompted traders to scale back bets on near-term monetary easing.
Markets are now pricing in a 96% probability that the Federal Reserve will hold rates steady at its March 18 meeting.
The renewed inflation pressure has added to volatility across risk assets, including equities and cryptocurrencies.
February decline extends losing streak
Bitcoin is down about 3% on the day and is on track for its fifth consecutive monthly decline.
February is set to close with a roughly 14% loss, marking the longest losing streak since the 2018 bear market.
Despite the persistent weakness in price, some data suggest underlying demand remains intact.
Institutional capital flows and ETF accumulation have continued, and certain quantitative models imply that Bitcoin is trading below flow-implied fair value.
Still, the divergence between price performance and perceived demand has heightened uncertainty about the near-term outlook.
Technical resistance caps upside
Wednesday’s rally to $70,040 briefly raised hopes of a breakout, but the move proved short-lived.
Bitcoin was pushed back below $68,000 within hours, forming what technical analysts describe as a failed breakout.
Several resistance levels have converged to create a formidable ceiling.
The 200-week exponential moving average currently sits near $68,330, a level that has historically marked the dividing line between bull and bear market regimes.
Bitcoin has traded below that indicator for weeks, and Wednesday’s move above it lasted less than a day.
Above that lies the previous 2021 all-time high around $69,000, a psychologically significant level that now acts as overhead supply.
The round-number $70,000 mark further reinforces the resistance cluster, having rejected multiple rally attempts since the recent selloff began.
Can BTC break higher in March?
The combination of sticky inflation, fading rate-cut expectations, and strong technical resistance has placed Bitcoin in a vulnerable position heading into March.
While institutional accumulation and longer-term models suggest potential upside, the market remains sensitive to macroeconomic developments.
Any further upside surprise in inflation data or tightening in financial conditions could deepen the pullback.
For now, Bitcoin remains rangebound, with bulls needing to reclaim the $68,000–$70,000 zone to shift momentum decisively.
Until then, broader risk sentiment and macro signals are likely to dictate price direction.
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