Fresh Inflation Data Pushes Bitcoin Below $80,000

On Thursday, bitcoin briefly fell below $80,000 after fresh U.S. inflation figures came in hotter than forecast.

The largest digital asset was last trading at $81,028, having touched an intraday low of $79,805 earlier in the New York session.

In the past 24 hours, bitcoin has recovered to trade just over 1% lower, though it has lost nearly 3% over the last seven days.

The U.S. producer price index increased in September at the quickest rate in over four years, according to a Thursday release from the Bureau of Labor Statistics.

The producer price figures followed a higher-than-expected consumer price index reading for September released a day earlier.

Bitcoin's price reflected the signal that elevated prices are persistent in the world's largest economy, prompting traders to anticipate the Fed might keep interest rates elevated for a prolonged period.

The U.S. central bank is scheduled to decide on its interest rate policy at the end of October.

Historically, bitcoin has benefited from low interest rates because cheaper borrowing costs free up capital that can flow into the cryptocurrency.

However, the Federal Reserve has been hiking rates this year, and its chair has said curbing inflation remains the central bank's top priority.

Bitcoin now trades about 36% below its all-time peak of $126,080 reached in October of last year.

Notwithstanding this week's decline, analysts have said bitcoin has exited the bear market that dominated most of 2026, fueled by gains in August and September.