Bitcoin News Today: Bitcoin Dives 1.9% After U.S. PPI Surpasses 3.3% Year-Over-Year Expectations

Bitcoin experienced a sharp price correction following the release of the U.S. Producer Price Index (PPI) data, with the July figure surging 0.9% month-over-month and 3.3% year-over-year—well above the forecasted 2.5%—triggering a sell-off across the cryptocurrency market [1]. In response, Bitcoin briefly dipped to $118,335, filling a key CME futures gap and eliminating a notable technical overhang. Analyst Jelle highlighted the drop as a “sharp reaction” to the unexpected inflationary data [1], with Bitcoin briefly touching $118,335 before rebounding to hover near the $120,000 support level.

The correction followed Bitcoin reaching a new all-time high of $124,128 earlier in the day [1], after which it lost more than $5,800 in value within hours. Taker sell volume spiked to $3.13 billion, indicating strong immediate selling pressure from traders offloading liquidity in the wake of the PPI announcement [2]. This volatility was mirrored in the broader crypto market, where over $1 billion in open positions were liquidated in the 24 hours following the drop, with $218 million of that amount attributed to Bitcoin [2].

British Hodl, who had previously highlighted the CME gap at $118,335 on August 11, confirmed its closure following the recent price action [1]. The move marked a key technical development, as the gap’s resolution removed a potential barrier for upward movement. However, the rebound has not yet been sustained, with Bitcoin currently trading at $118,335—a 1.9% drop from the previous day [1].

Analysts have remained cautious, noting the potential for further volatility as traditional markets continue to digest the inflationary shock. Bull Theory observed that the failure to absorb the selling pressure above $120,000 suggests that key support is now at $117,500, with the risk of a further decline to $110,000 if this level breaks [1]. Similarly, analyst Ali Ash identified a “Upthrust Trap” pattern, warning that a breakdown below $116,000 could open the door to another significant pullback [1].

On the flip side, some analysts have maintained a bullish outlook. Crypto Patel suggested that a confirmed close above $120,000 could set the stage for Bitcoin to reach $150,000 [1], while Crypto Rover anticipated a new all-time high if resistance at $121,500–$123,000 is overcome. However, the immediate path remains uncertain, with the market now watching for signals on whether the $120,000 level can be retested and held.

The PPI-driven volatility highlights the growing sensitivity of Bitcoin to macroeconomic data, especially as the market continues to mature. While the CME gap has been filled, the broader trend will depend on how the asset responds to the next wave of data and how traders position themselves ahead of the upcoming CPI report. For now, the price action suggests a period of consolidation, but the presence of large liquidation events and shifting sentiment underscores the inherent risks of a market still adjusting to macroeconomic realities.

Source: [1] Bitcoin Fills CME Gap in Recent Crash to $118K (https://thecryptobasic.com/2025/08/14/bitcoin-fills-cme-gap-in-recent-crash-to-118k/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-fills-cme-gap-in-recent-crash-to-118k)

[2] Here's Why Bitcoin Has Corrected 4% Despite Reaching ... (https://thecryptobasic.com/2025/08/14/heres-why-bitcoin-has-corrected-4-despite-reaching-an-all-time-high-today/)