Bitcoin Slides $1,200 Following Hot Inflation Data

Bitcoin dropped by $1,200 today as traders reacted to new Producer Price Index data. The numbers came in hotter than expected, suggesting that inflation remains a stubborn hurdle for the economy. The price slipped below the $77,000 mark and currently sits near $77,260, representing a 3 percent decline over the last 24 hours.

The volatility caused significant pain for bullish traders. More than $190 million in long positions were liquidated in just one hour as the market reacted to the news. The downturn arrived alongside a $6 billion Treasury bond buyback attempt that failed to stabilize investor sentiment.

Investors are now watching to see if Bitcoin can find support at current levels or if more selling pressure lies ahead. With inflation data remaining a major focus, the market will likely stay jumpy until there is more clarity on future interest rate policies.