Bitcoin drops toward $71,000 after hot February PPI and oil spike
Geopolitical escalation tied to Iran and a stronger-than-expected PPI print hit risk assets ahead of the Fed decision
Bitcoin slid from around $74,000 to near $71,000 on March 18 after reports of escalating attacks tied to Iran pushed oil higher and February U.S. producer inflation came in hotter than expected. BTC was down about 3.5% over 24 hours as traders looked ahead to the Federal Reserve’s March policy decision and Chair Jerome Powell’s messaging.
Risk pricing tightened as two macro catalysts hit in quick succession: a jump in crude tied to Middle East headlines and an inflation print that complicated the path to rate cuts. For crypto, the combination matters because higher energy prices can feed inflation expectations, while hotter inflation data can keep financial conditions restrictive. That mix tends to pressure high-beta assets into key central bank events.
Bitcoin had been relatively steady around the $74,000 area over the prior day before selling accelerated Wednesday morning. The move followed reports of stepped-up attacks against Iran’s energy resources and then the release of February Producer Price Index data that came in stronger than forecasts.
The geopolitical impulse began with U.S. President Donald Trump adopting a more aggressive tone on Iran in a series of Truth Social posts, calling the country the “NUMBER ONE STATE SPONSOR OF TERROR.” Around the same time, Iran’s state TV reported that part of the South Pars gas field was attacked.
The sequence of reports also included claims that Israel killed Iran’s Intelligence Minister Esmail Khatib, and that the U.S. deployed 5,000-pound bunker-buster bombs targeting missile sites near the Strait of Hormuz, a critical route for global oil flows. Oil reacted quickly, with WTI crude rising from as low as $92 per barrel overnight to nearly $96.
Minutes later, the U.S. inflation data added a second shock. The February PPI rose 0.7% versus 0.3% expected and was up from January’s 0.5%. Core PPI increased 0.5% versus 0.3% expected, though it cooled from January’s 0.8%.
One key wrinkle for markets is timing: the February inflation data predates the reported attacks and the subsequent rise in oil prices. That leaves investors weighing an already-firm inflation backdrop against the risk that higher energy costs could add further pressure.
As the data and oil move filtered through markets, bitcoin fell to near $71,000, down 3.5% over the past 24 hours, according to Coin360 data. Ether, solana and XRP were each down closer to 5%, per Coin360 data.
Traditional markets showed smaller declines at the same time. The Nasdaq and S&P 500 were each lower by about 0.4%, while gold slid 2.5% to $4,885 per ounce.
The next catalyst is the Federal Reserve’s March policy decision later Wednesday. Rates were widely expected to be held steady, shifting attention to Powell’s messaging and how policymakers frame the balance between growth risks and inflation pressures, with oil’s sharp move now part of the backdrop.
