Bitcoin briefly crossed $65,000 on Friday after the U.S. producer price index came in cooler than expected. The move didn't last. Within hours, the largest cryptocurrency had fallen back to around $64,200, and its market cap dropped below $1.3 trillion again.
The PPI pop
June's producer price index data showed a smaller-than-forecast increase, feeding hopes that inflation is easing. That gave Bitcoin a quick jolt — enough to push it past the $65,000 mark for the first time in days. The rally followed a strong 48-hour uptrend that had already lifted prices from lower levels.
Why it didn't stick
The gains evaporated almost as fast as they appeared. Traders started shifting their focus back to the Federal Reserve's next move. The data didn't change the broader rate outlook enough to sustain a breakout. So Bitcoin gave back the pop, settling in the low $64,000s.
Market cap dips under $1.3T
With the price retreat, Bitcoin's total market capitalization slipped back below the $1.3 trillion threshold. That level had been reclaimed only recently during the prior two-day run. The quick flip underscores how fragile the current sentiment is — good news gets bought, but not held.
The market is now waiting for the Fed's next policy meeting later this month. Friday's PPI print didn't shift the odds dramatically, but it kept the door open for a potential rate cut in September. Until then, Bitcoin looks stuck in a range — with $65,000 acting as resistance and $62,000 as support.
