Bitcoin slips under $80K after US PPI gains most in four years
BTC buyers attempted to defend $80,000 support after September US producer inflation overshot expectations by 100 basis points for the largest monthly gain since March 2022
Bitcoin's price fell below $80,000 on Thursday after U.S. producer inflation data exceeded expectations by 100 basis points, marking the largest monthly gain since March 2022. The September Producer Price Index (PPI) rose to 6.3%, while core PPI increased to 5%, compared to forecasts of 4.4% and 4.7%, respectively, according to the Bureau of Labor Statistics (BLS).
The data signaled a strong upward trend, with an unadjusted 12-month increase of 6.3%, the highest since December 2022. This surge in inflation followed a previous month where the Consumer Price Index (CPI) also surpassed expectations, leading to a decline in risk assets and crypto. Economists, including Mohamed El-Erian, considered the PPI figure "even more striking" than the CPI result, as U.S. bond yields remained low despite the inflation data.
The 10-year bond yield dropped almost 3% to its lowest level since September 23. Analysts noted that Bitcoin's price found support at its 21-week and 50-week exponential moving averages ($76,144 and $78.459, respectively), and it remained below the key support zone between $82,500 and $82,800.
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