Bitcoin Slips After Hot September PPI, Tests $80,000

Bitcoin fell about 0.4% shortly after the U.S. released stronger-than-expected producer-price data for September on Oct. 15. The cryptocurrency dropped from about $80,925 at 8:30 a.m. ET, when the report was released, to approximately $80,582 three minutes later. It later recovered to about $80,732, remaining below its pre-release price.

Bitcoin was already under pressure before the report, trading down about 2.9% on the day. Its session low was near $80,470, placing that level and the round-number mark of $80,000 among the prices traders were monitoring.

The Bureau of Labor Statistics reported that final-demand producer prices rose 1.3% from August and 6.3% from a year earlier. Economists had expected a 0.6% monthly increase and a 5.5% annual rise. September’s monthly increase was the largest since March 2022.

Energy prices accounted for much of the increase. Final-demand energy prices rose 10.8%, while gasoline prices increased 20.3% and diesel prices rose 21%. Gasoline accounted for half of the monthly increase in final-demand goods prices.

A measure that excludes food, energy and trade services increased 0.5% from August and 5% from a year earlier. August’s figures were revised higher, with the monthly increase raised from 0.4% to 0.5% and the annual increase from 5.4% to 5.6%.

Producer prices can affect consumer inflation when businesses pass higher costs to customers. Companies can also absorb some costs in their profit margins, and the timing of any pass-through varies. A stronger PPI report can raise expectations that the Federal Reserve will keep interest rates higher for longer, which can pressure assets such as Bitcoin.

Data from CoinGlass showed estimated liquidation concentrations around the $80,000 area. The preview does not provide guaranteed support or resistance levels. A sustained break below $80,000 with higher spot trading volume would indicate continued selling pressure. A recovery above about $80,975, Bitcoin’s pre-release price, would return higher liquidation levels above the current price to traders’ focus.

Traders were also monitoring Treasury yields, the U.S. dollar, U.S. spot Bitcoin exchange-traded fund flows and the Federal Reserve’s next policy meeting. The PPI report followed September consumer-price data that pointed to elevated inflation.

Ethereum also slipped after the release, moving from about $2,350 to $2,346. Bitcoin’s decline began before the PPI data, making the report’s effect on the full-day move difficult to isolate.