Bitcoin fell below $80,000 on May 13 after the US producer price index (PPI) surged to 6% year-over-year in April, far exceeding forecasts and reigniting inflation fears. The data complicates the Federal Reserve's path to interest rate cuts, pressuring risk assets like crypto. Kevin Warsh was confirmed as Fed chair in a 54-45 Senate vote, taking over as the White House pushes for lower rates amid rising energy costs tied to the Iran conflict and supply risks around the Strait of Hormuz. Crypto-linked stocks closed lower, with Coinbase, Robinhood, Bullish, and Gemini finishing in the red. However, some stocks rebounded from session lows, including Circle (up 3%) and eToro (up 6.8%) after earlier sell-offs. Bitcoin miners Core Scientific and Cipher Mining gained over 5%. Arthur Hayes, BitMEX co-founder, said he is 'buying dips,' predicting spiking 10-year Treasury yields near 4.5% will force President Trump to secure a trade deal with China during his state visit. The Senate Banking Committee will debate amendments to the Clarity Act, a crypto market structure bill, this week. Analysts at 21Shares view the inflation shock as a 'final flush of weak hands,' with key support at $78,000 and resistance at $82,000. They note that improving macro conditions from Trump's China visit could lift sentiment.

Key facts

• Bitcoin fell below $80,000 after April PPI surged 6% year-over-year, triple expectations.
• Kevin Warsh confirmed as Fed chair in 54-45 Senate vote amid inflation pressures.
• Crypto stocks mostly lower; Circle and eToro rebounded from session lows.
• Arthur Hayes buying dips, predicts Treasury yield spike will force Trump-China deal.
• Senate Banking Committee to debate Clarity Act amendments this week.

KeyAudit data perspective