Bitcoin Falls Below $79K After PPI Spike; $304M Liquidated

Bitcoin fell to an intraday low of $78,704 on May 13 after the producer price index rose 1.4% in April, a move that coincided with roughly $304 million in long position liquidations across the crypto market. The drop came as investors digested stronger wholesale inflation data.

Earlier in the day bitcoin had been trading above $81,000 and was about $3,000 below its May 11 peak of $82,145. By 1:08 p.m. EDT on May 13 the price recovered to just over $79,000, leaving the coin down roughly 1% over the prior 24 hours and its market capitalization below $1.6 trillion.

The producer price index rose 1.4% in April, taking the annual rate to about 6%. That reading followed consumer price data that slightly exceeded expectations. Prediction markets still showed near-certain odds that the Federal Reserve would hold interest rates unchanged in June, but the PPI increase raised questions about future policy. Boston Fed President Susan Collins warned that “some policy tightening is needed to ensure that inflation returns durably to 2% in a timely manner.”

Geopolitical developments added to market caution. The U.S. administration rejected an Iranian counter-peace proposal, and President Donald Trump described U.S.-Iran relations as being on “life support,” prompting investors to await Washington’s next steps.

Trading platforms recorded heavy forced selling. Data from Coinglass showed bitcoin accounted for about $94 million in long position liquidations on May 13, about $37 million more than the previous day. Short liquidations were roughly double the $7.5 million recorded on Tuesday. Across the broader crypto market, roughly $304 million in long positions were liquidated versus about $71 million in shorts.

Market participants noted that energy-driven price shocks are spreading into housing, services and consumer sectors. A Bitunix analyst wrote that energy-driven shocks “are once again becoming the dominant force within the U.S. inflation structure,” and that the data suggests U.S. inflation has not returned to a stable trajectory despite two years of restrictive monetary policy.

Traders said the prospect of renewed Fed tightening weighed on risk-on assets, including technology stocks and cryptocurrencies. Long position liquidations outpaced shorts over the two-day period, amplifying downward price moves during volatile sessions.