Bitcoin Surges to $65.5K on Surprise US PPI Drop, Short Squeeze
What happened: Bitcoin reached an intraday high of $65,500 on July 15, its highest in three weeks, after US Producer Price Index data showed a -0.
What happened: Bitcoin reached an intraday high of $65,500 on July 15, its highest in three weeks, after US Producer Price Index data showed a -0.3% month-over-month decline—well below consensus. The move followed a softer-than-expected CPI print the day before and triggered $209–$230 million in short liquidations across crypto markets. Market expectations for a July Fed rate hike dropped sharply, with CME FedWatch probabilities falling from over 40% to around 10–13%.
Why it matters: The rally was driven as much by mechanical factors (short squeezes) as by organic demand, with analysts warning that Bitcoin is nearing technical resistance at its 50-month EMA—a level that has historically triggered corrections in bear markets. The episode highlights crypto’s sensitivity to macroeconomic surprises and the outsized impact of derivatives positioning on price action.
Source: Cointelegraph