Bitcoin's (BTC-USD) price took a hit on Thursday, sliding to below the $70K psychological threshold, as another hot inflation report bolstered speculation the Federal Reserve will not be in a hurry to cut interest rates.

The largest digital token by market cap (BTC-USD) retreated 4.9% to $69.7K at 2:51 a.m. ET, a day after the cryptocurrency notched a new record high of $73.6K on the back of strong inflows into spot bitcoin ETFs. Some other major coins also saw selling pressure, with ether (ETH-USD) down 4.2%, cardano (ADA-USD) off 1.1% xrp (XRP-USD) -2.5% and avalanche (AVAX-USD) -3.6%.

The intraday weakness came as prices paid to U.S. producers in February came in hotter than forecast, and also jobless benefits were claimed in the past week by fewer people than economists had expected. The strong inflation and labor market data reinforces the Fed's view that it will need to hold out for more progress before embarking on interest-rate cuts.

This is on top of data early this week that showed consumer prices also advanced at a firm clip last month.

Stocks and bonds reacted negatively to the latest data, with all three major U.S. equity indexes slipping less than 0.5% and Treasury yields rising across the curve.

Crypto-linked stocks were in the red, with MicroStrategy (MSTR) -6.5%, Coinbase (COIN) -7.9%, Marathon Digital (MARA) -9.1%, Riot Platforms (RIOT) -8.2% and CleanSpark (CLSK) -8.2% among the more notable decliners. MicroStrategy (MSTR), the biggest corporate holder of bitcoin (BTC-USD), filed earlier in the week to raise $500M more in a convertible debt offering, with plans to use the proceeds to buy more bitcoin.