The crypto market is facing new pressure after fresh U.S. inflation data showed that price growth is still stubbornly high, raising concerns about tighter financial conditions. The January 2026 Producer Price Index report from the Bureau of Labor Statistics was released today, Feb. 27. It showed that wholesale inflation was higher than expected, supporting predictions that the Federal Reserve might keep interest rates high for a longer period. The data arrived at 8:30 a.m. ET and was followed by immediate weakness in equities and digital assets. Bitcoin (BTC) slipped toward the $66,000, while Ethereum (ETH) and major altcoins posted similar declines.
The January report showed headline producer prices rising 0.5% month over month, above the 0.3% forecast. On a yearly basis, PPI climbed 2.9%, also exceeding expectations. Core PPI, which excludes food and energy, rose 0.8% on the month and 3.6% year over year, marking its highest reading in around 10 months. A narrower “super-core” measure increased 0.3% for the third straight month.
Services prices were the main driver. Final demand services jumped 0.8%, the largest gain since July. Trade services margins surged 2.5%, while professional and commercial equipment wholesaling rose 14.4%, a move widely linked to higher import costs tied to tariffs.
In contrast, goods prices fell 0.3%, led by declines in energy and food. Goods outside of those categories rose 0.7%, indicating that underlying cost pressures are still very much present. Policymakers are finding it more difficult to defend short-term rate cuts as a result of the services sector’s inflation. These conditions typically weigh on risk assets, including cryptocurrencies.
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