Bitcoin Briefly Slips Below $80,000 as Hot U.S. Inflation Data Lands
Key Takeaways
- •Bitcoin dipped below the $80,000 mark on Thursday, reaching a low of $79,805 before recovering to around $81,028, leaving it down just over 1% in 24 hours and nearly 3% over the past week.
- •September producer prices rose at their fastest pace in more than four years, arriving one day after consumer price figures came in above expectations.
- •The stubborn inflation data has led traders to bet the Federal Reserve may keep interest rates higher for longer, with the central bank's next rate decision due at the end of this month.
- •Bitcoin has historically performed well when borrowing costs fall, since rate cuts increase the liquidity available to buy the cryptocurrency, though the Fed has raised rates this year while prioritizing inflation reduction.
- •The cryptocurrency trades nearly 36% below its record high of $126,080 from last October, but analysts have declared it out of the bear market that occupied most of 2026 following an August and September rally.
Bitcoin's price momentarily dipped below the $80,000 level on Thursday as the market digested another round of hotter-than-expected U.S. inflation data.
The largest cryptocurrency recently stood at $81,028 after dropping to as low as $79,805 on Thursday morning in New York. Over a 24-hour period, bitcoin is down just over 1% after mounting a partial recovery, though it has shed nearly 3% of its value over the past week.
Data released Thursday by the U.S. Labor Department's Bureau of Labor Statistics showed that producer prices — which track the prices businesses receive for their goods and services — rose in September at the fastest pace in more than four years. The figures arrived just one day after September's Consumer Price Index, which measures what consumers pay for goods and services, came in higher than expected.
Taken together, the reports indicate that elevated prices are not going away in the world's largest economy — leading traders to bet that the Federal Reserve may keep interest rates higher for longer. The central bank will make its next decision on interest rates at the end of this month.
Bitcoin's price has historically performed well in a low interest rate environment: when borrowing costs are cut, more liquidity becomes available to buy the cryptocurrency. This year, however, the Fed has raised interest rates, with the head of the central bank claiming that getting inflation down in the U.S. is its number one priority. For traders watching the liquidity backdrop, the month-end rate decision is the next scheduled point of focus.
The biggest cryptocurrency is currently trading nearly 36% below the record high of $126,080 it touched last October. Despite the dip this week, analysts have declared the asset to be out of the bear market it spent most of 2026 in, following a rally in August and September.
This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.
