Bitcoin Falls After Inflation Data: Analysts Warn of Critical Support Level
Bitcoin and the broader cryptocurrency market faced renewed pressure today following the release of the U.S.
Derar Hadri 
Bitcoin and the broader cryptocurrency market faced renewed pressure today following the release of the U.S. Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. After climbing to a recent high above $88,000, Bitcoin experienced a notable pullback, falling to $84,000, as fresh inflation data sparked concerns among investors.
PCE Data Sparks Inflation Fears
The preliminary PCE report for February showed headline inflation at 2.5%, in line with expectations. However, core PCE inflation—which excludes volatile food and energy prices—rose to 2.8%, exceeding forecasts of 2.7%. According to analysts at The Kobeissi Letter, the increase in core inflation, combined with weakening economic growth projections, presents a troubling scenario:
“This combination forms a perfect recipe for recessionary inflation in 2025,” they stated, warning that trade tensions and future inflation readings—particularly the data due in March—will be crucial for assessing the macroeconomic outlook.
$84,000: A Key Level for Bitcoin
Renowned crypto analyst Michaël van de Poppe weighed in on the market’s reaction, emphasizing that $84,000 is a critical support level for Bitcoin. While the overall trend remains bullish, van de Poppe noted that the price is beginning to “shake” and show signs of weakness.
“The trend for Bitcoin is still upwards, but it’s becoming more uncertain. If we drop below $84,000, I expect a test of the $78,000–$80,000 range—or possibly lower—before a rebound can occur,” he explained.
This warning comes amid growing market sensitivity to macroeconomic indicators. Investors are increasingly looking to inflation data and central bank commentary for signals on monetary policy, which continues to influence risk assets like Bitcoin.
What’s Next for BTC?
With March’s inflation report on the horizon and market sentiment turning cautious, Bitcoin’s ability to hold above $84,000 could determine its short-term direction. A sustained break below this level may open the door for deeper corrections, while holding above could reinforce the ongoing bullish trend.
As always, traders and investors are advised to stay alert and monitor upcoming economic releases closely.
