Bitcoin slips below $80,000 after US PPI beats forecasts
Bitcoin fell under $80,000 on Thursday after September US producer price inflation came in at 6.3%, a full percentage point above expectations, before recovering to about $81,000.
Why it matters: Higher-than-expected US inflation is pressuring Bitcoin and risk assets, while analysts watch key moving averages for signs the uptrend holds.
Key points
- September PPI was 6.3% against 5.3% expected, the biggest monthly jump since March 2022, with core PPI at 5% versus 4.4% forecast.
- BTC/USD fell as much as 1.8% on the day to its lowest since 18 Sept, then rebounded to around $81,000.
- Rekt Capital says a volatile retest of the 21-week and 50-week EMAs at $76,144 and $78,459 could still preserve Bitcoin's bullish trend.
Bitcoin slipped below $80,000 on Thursday after US producer price inflation data came in well above forecasts, Cointelegraph reports. BTC/USD fell as much as 1.8% on the day to its lowest level since 18 Sept, according to TradingView data, before rebounding to around $81,000.
September PPI measured 6.3% against expectations of 5.3%, a 100-basis-point overshoot and the largest advance since a 1.7% rise in March 2022, the Bureau of Labor Statistics said. Core PPI rose to 5% versus an expected 4.4%. The figures followed a consumer price index reading that also beat estimates and pushed crypto and risk assets lower.
Risk appetite was already weak, with a tech sell-off centred in South Korea sending the KOSPI Composite Index down 7.5% on Thursday.
Analyst Aksel Kibar said the latest weekly close near $83,700 lacked breakout strength, with $75,000 as a negation level.
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