Bitcoin Falls to $65,000 as Higher-Than-Expected US Inflation Data Dims Fed Rate Cut Hopes

Bitcoin dropped more than 3.5% to around $65,000 on Friday after US producer price data came in above forecasts, dampening expectations for near-term Federal Reserve rate cuts, a market report shows. The cryptocurrency, which had attempted to hold above $70,000 earlier in the week, returned to a key support zone amid continued selling pressure and tight global liquidity. FxPro analyst Alex Kuptsikevich noted Bitcoin is trading in a range between $62,000 and $70,000, with insufficient new demand causing short-term holders to quickly sell during rebounds. JPMorgan Chase & Co. expects a potential trend shift in the second half if Congress passes structural legislation such as the Clarity Act, while investors monitor upcoming monetary policy updates and Senate regulatory developments.