Bitcoin retreats from record peak on US inflation fears
Bitcoin, the world's largest cryptocurrency, fell Friday in Seoul after hitting a one-month high the previous day, pressured by hotter-than-expected US inflation data.
As of noon, bitcoin was trading at about 165.6 million won ($119,100) on local exchange Bithumb, down 2.6 percent from Thursday's peak of 169.9 million won.
The crypto had climbed to a new high on Thursday, but sentiment soured after US data showed the producer price index for July jumped 0.9 percent on-month, far above the 0.2 percent forecast and the biggest gain since June 2022. The PPI, which tracks prices before they reach consumers, points to further cost pressures ahead.
US media said the upside surprise signals the start of broader tariff-driven inflation as President Donald Trump's sweeping import duties begin to take effect.
The report complicates expectations for a Federal Reserve rate cut in September. Analysts said the hot inflation reading could prompt the Fed to hold rates steady to avoid fueling further price gains.
Bitcoin pulled back more sharply in US trading, dropping 4.5 percent from an all-time high of $124,496 on Thursday to around $118,800 as of Friday in Seoul.
Other major digital currencies also lost ground. Ethereum, the second-largest crypto by market cap, slid nearly 4 percent to about $4,620, after briefly topping $4,700 on Thursday, approaching its 2021 record of $4,868. XRP and solana each fell more than 5 percent.
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Bitcoin retreats from record peak on US inflation fears
Bitcoin, the world's largest cryptocurrency, fell Friday after touching a new high the previous day, weighed down by hotter-than-expected US inflation data. Bitcoin, the world's largest cryptocurrency, fell Friday in Seoul after hitting a one-month high the previous day, pressured by hotter-than-expected US inflation data. As of noon, bitcoin was trading at about 165.6 million won ($119,100) on local exchange Bithumb, down 2.6 percent from Thursday's peak of 169.9 million won. The crypto had climbed to a new high on Thursday, but sentiment soured after US data showed the producer price index for July jumped 0.9 percent on-month, far above the 0.2 percent forecast and the biggest gain since June 2022. The PPI, which tracks prices before they reach consumers, points to further cost pressures ahead. US media said the upside surprise signals the start of broader tariff-driven inflation as President Donald Trump's sweeping import duties begin to take effect. The report complicates expectations for a Federal Reserve rate cut in September. Analysts said the hot inflation reading could prompt the Fed to hold rates steady to avoid fueling further price gains. Bitcoin pulled back more sharply in US trading, dropping 4.5 percent from an all-time high of $124,496 on Thursday to around $118,800 as of Friday in Seoul. Other major digital currencies also lost ground. Ethereum, the second-largest crypto by market cap, slid nearly 4 percent to about $4,620, after briefly topping $4,700 on Thursday, approaching its 2021 record of $4,868. XRP and solana each fell more than 5 percent.
