Bitcoin slides to $62,500 as hot PPI reading dashes rate-cut hopes

Bitcoin fell to $62,500 after the Producer Price Index rose above consensus, pushing the likelihood of a June rate cut to near zero.

"Previous bear markets ended at prices near or marginally below the realized price, suggesting that from a pure valuation standpoint, Bitcoin may be approaching a structural floor," CryptoQuant wrote in a June 10 report. However, the firm cautioned that "a regime change into a bull market requires a constructive demand recovery, a condition not yet visible in the data."

The PPI reading compounds a broader demand crisis. Total Bitcoin demand contracted by 652,000 BTC, the sharpest drop since January 2022, according to CryptoQuant. Spot Bitcoin ETF outflows reached $5.7 billion since mid-May, per SoSoValue data, while corporate treasury buying collapsed from $500 million per day at the start of the year to negligible levels, Glassnode reported. The Crypto Fear and Greed Index fell to 10, a level that has historically coincided only with major cycle bottoms — including the late-2018 low near $3,000 and the March 2020 crash near $4,800.

The transmission chain is clear: hotter inflation data reduces the probability of monetary easing, removing a key catalyst for risk assets. The S&P 500 futures slipped as bond yields rose, reflecting the broader risk-off rotation that dragged Bitcoin lower. With the Fed's June meeting approaching and ETF flows still net negative, Bitcoin's next support sits near $59,000 — the June low that marked its weakest level since October 2024. A break below that level would open the path toward the realized price of $53,600, a zone that has historically marked structural floors but not confirmed bottoms.

Demand Signals Flash Red

Realized losses reached only 187,000 BTC, far below the 1.2 million BTC flushed out at the 2022 cycle bottom, indicating the market has not yet exhausted its supply of motivated sellers, per CryptoQuant. Momentum on Glassnode's tracking chart sits pinned at the -1.00 floor, with spot cumulative volume delta flipping to roughly negative 1,000 — a configuration that preceded every major breakdown in the current cycle.

Corporate treasury inflows have also dried up. With the exception of Strategy (MSTR), daily purchases by Bitcoin treasury firms have slowed to a fraction of their recent pace, Glassnode said, removing another source of marginal demand.

What Comes Next

The Fed's June 2026 policy decision now carries outsized weight. If the central bank signals a prolonged hold, Bitcoin could test the $59,000 support zone again. A dovish surprise — or a ceasefire deal that lowers energy prices and inflation expectations — could trigger a relief rally toward resistance at $68,000. The Crypto Fear and Greed Index at 10 suggests extreme pessimism, but as past cycles show, fear can persist for weeks before a durable bottom forms.

This article is for informational purposes only and does not constitute investment advice.