Bitcoin (BTC) traded near $79,350 on Tuesday, down approximately 1.8 percent in 24 hours, after a hotter-than-expected US inflation report sent a chill through risk assets. The move tested the market's conviction, pushing the price below the psychologically important $80,000 mark for the first time since late April before a partial recovery, with the next directional break hinging on a landmark US regulatory vote.
"Bitcoin pulled back toward the $79,000 zone after US PPI inflation rose to its highest level since 2022, increasing concerns around prolonged monetary tightening by the Fed," Akshat Siddhant, Lead Quant Analyst at Mudrex, said. He noted that a positive outcome from the CLARITY Act vote "could help Bitcoin break above the $83,000 resistance and move toward $85,000, while a rejection may push BTC below the $78,500 support."
The catalyst for the pullback was the April Producer Price Index, which accelerated to 6 percent year-over-year, far exceeding Wall Street's 4.7 percent forecast. The data reinforces a "higher-for-longer" interest rate narrative, reducing the Federal Reserve's room to cut rates and tightening liquidity for assets like Bitcoin. The market is also digesting the confirmation of Kevin Warsh as the new Federal Reserve Chair, a figure known for his crypto-positive statements, who takes over from Jerome Powell on May 15.
Despite the macroeconomic headwinds, structural support for Bitcoin remains firm. Spot Bitcoin ETFs have absorbed persistent selling pressure, recording seven consecutive weeks of inflows totaling $3.43 billion and providing a strong demand floor. This institutional buying is counteracting the bearish macro data, creating a tense equilibrium. Technically, Bitcoin faces resistance at the $82,000–$83,000 zone, where the 200-day moving averages sit. A daily close below the critical $78,500 support level could open a path to the next major support zone near $75,500, while a break above $83,000 would signal bullish continuation. The market now looks to the CLARITY Act vote as the decisive event to break the stalemate.
This article is for informational purposes only and does not constitute investment advice.
