Friday dropped a bombshell that nobody wanted to see the day before the most important Fed meeting of 2026.

Bitcoin news broke as the asset dipped toward $62,500 following the release of May US Producer Price Index data, which hit 6.5% — the highest since late 2022. The stronger-than-expected inflation print stoked fears of extended Fed rate hikes, weighing on Bitcoin and other risk assets. CryptoRank.io

Bitcoin briefly rallied to about $63,150 then retraced to around $62,800 after the PPI surprise. The move pushed Polymarket-implied 2026 Fed hike odds to approximately 51%, increasing rate-hike risk across crypto markets. The Block

Here is why this matters so much heading into today's FOMC meeting.

Core PPI doubled month over month. Trade services jumped 2.7% — the largest single-month gain on record — as wholesalers and retailers passed tariffs and oil costs through to consumers in real time. PPI is the pipeline data. What this is telling you is that the pipeline is already flowing into the CPI bucket. Expect the next one or two CPI prints to keep running hot. Investing.com

The setup going into today's Fed meeting is the most treacherous Bitcoin has faced all year. A hawkish dot plot tomorrow confirms what PPI is already screaming — and the $60,000 level comes back into play immediately.

But here is the contrarian case: the Fed has already done most of its signaling through language. A hold with neutral language — no hike signal — gives Bitcoin its first clean runway since April.

The range is clear. $61,000 is support. $63,000 is resistance. Whatever Powell says tomorrow breaks one of those two levels. Be ready for both outcomes.

DYOR. Not financial advice.#SpaceXIPOUSStocksOpenHigher