Bitcoin (BTC) experienced a notable decline, dropping below $80,000 after the U.S. producer price index (PPI) for April surged by 1.4% month-over-month, significantly exceeding economists' expectations of a 0.5% increase. This increase contributed to an annual producer inflation rate of 6%, raising concerns about reaccelerating inflation following a 3.8% year-over-year rise in the consumer price index (CPI), the highest in nearly three years. The unexpected inflation figures complicate the Federal Reserve's plans to ease monetary policy later this year. As Bitcoin fluctuated, trading just above $80,000, equity futures remained steady, with Nasdaq 100 futures up 0.2%. The inflation data adds uncertainty for the Fed, particularly amid rising energy prices linked to the ongoing conflict in Iran and concerns over supply disruptions in the Strait of Hormuz. This backdrop poses challenges for incoming Federal Reserve Chair Kevin Warsh, as investors watch for how he will balance the risks of slowing growth against persistent inflation pressures.