Bitcoin Dips Below $80,000 After US Producer Inflation Surges

Bitcoin dips below $80,000 — Bitcoin (BTC) fell below the $80,000 support level on Thursday, pressured by a hotter-than-expected U.S. Producer Price Index (PPI) report that showed the largest monthly gain in over four years.

September’s PPI rose 6.3% year-over-year, a full percentage point above market forecasts and the most significant increase since March 2022. Core PPI also overshot expectations. The data followed a higher-than-anticipated Consumer Price Index (CPI) reading the previous day, contributing to a sell-off across risk assets.

Analysts noted the potential for a “volatile retest” of lower support levels. Trader Rekt Capital suggested that Bitcoin could still test its 21-week and 50-week exponential moving averages—around $76,144 and $78,459, respectively—while preserving its longer-term bullish structure.

Despite the inflation overshoot, U.S. 10-year Treasury yields declined, with some economists suggesting bond markets have decoupled from traditional data surprises and are instead focusing on concerns over the federal budget deficit.