Bitcoin (BTC) briefly fell below $80,000 on Thursday after United States Producer Price Index (PPI) data for September came in well above expectations, registering the largest monthly advance since March 2022.

Data from TradingView showed BTC/USD slipping to its lowest levels since Sept. 18, declining as much as 1.8% on the day before rebounding to around $81,000.

Producer inflation overshoots by a full point

September PPI came in at 6.3%, a full 100 basis points above the anticipated 5.3%, while core PPI rose to 5% versus an expected 4.4%, according to the Bureau of Labor Statistics (BLS). The final demand index tracks prices received by domestic producers for their output.

"The September increase is the largest advance since rising 1.7% in March 2022. On an unadjusted basis, the index for final demand climbed 6.3% for the 12 months ended in September, the largest 12-month increase since moving up 6.4% in December 2022," the agency confirmed in an official news release.

Inflation releases are among the most closely watched data points for crypto traders because they shape expectations for Federal Reserve interest rate policy, a key variable for liquidity conditions across risk assets such as Bitcoin.

The print arrived one day after the Consumer Price Index (CPI) also overshot estimates, dragging crypto and other risk assets lower. Sentiment was already fragile amid a technology sell-off centered in South Korea, where the KOSPI Composite Index fell 7.5% on Thursday.

Economist Mohamed Elrian described the PPI result as "even more striking" than the CPI figure. El-Erian and others noted that US bond yields were not rising on the back of the hotter inflation numbers. The US 10-year Treasury yield was down almost 3% at the time of writing, at its lowest levels since Sept. 23.

Robin Brooks, former chief FX strategist at Goldman Sachs, repeated earlier findings suggesting that yields had "decoupled" from US macro data as market priorities switched to the government's handling of the federal budget deficit. Brooks compared the 30-day correlation between upside data surprises and daily moves in the 10-year yield, revealing that it had dropped from near 0.6 earlier in 2026 to just below zero as of the end of August.

"That indicates that yields have decoupled from data and the obvious explanation for this is that markets are more focused on the trajectory of the deficit, so they're pushing up longer-term yields regardless of what data surprises are doing," he summarized in a blog post last month.

Analysts eye "volatile retest" of weekly supports

Bitcoin's pullback brought two support trend lines back into focus: the 21-week and 50-week exponential moving averages (EMA) at $76,144 and $78,459, respectively. Exponential moving averages weight recent prices more heavily than simple averages and are widely followed as trend gauges on higher timeframes.

Trader and analyst Rekt Capital noted that BTC/USD could still retest both levels and preserve its overall bullish trend.

"Deviating below them on a volatile retest to find a pullback bottom has historically happened in early-stage Bull Markets. These deviations however would occur after a bullish crossovers of these two EMAs, whereas Bitcoin is still pre-crossover," Rekt Capital said in an X post.

Bitcoin meanwhile remained below the $82,500-$82,800 area, a key support zone of interest in recent weeks.

Analyst Aksel Kibar said Bitcoin's latest weekly close, around $83,700, lacked strength as a breakout.

"A weekly close inside the range can resume wide consolidation between 60K-82.8K 75K can be utilized as the pattern (rectangle bottom reversal) negation level," he said on X. A rectangle pattern describes price consolidating between horizontal boundaries, with a defined level typically used to signal that the formation has failed.

This article was originally published by Cointelegraph.