Bitcoin's price momentarily dipped below $80,000 on Thursday following stronger-than-expected U.S. inflation data. The cryptocurrency traded at $81,028 after dropping to a low of $79,805 during New York morning hours.
Over the past 24 hours, bitcoin declined just over 1% after recovering from its intraday low. Over the preceding week, however, the asset shed nearly 3% of its value.
The Labor Department's Bureau of Labor Statistics reported Thursday that U.S. producer prices rose in September at their fastest pace in more than four years. This reading followed Wednesday's release of September's Consumer Price Index, which came in higher than expected.
The inflation data prompted market participants to anticipate that the Federal Reserve may maintain elevated interest rates for an extended period. The central bank is scheduled to announce its interest rate decision at the end of the month.
Bitcoin has historically performed better in low interest rate environments, as reduced borrowing costs can increase liquidity available for cryptocurrency purchases. The Federal Reserve has raised rates throughout the year, with the central bank's leadership prioritizing inflation reduction in the U.S. economy.
Bitcoin currently trades nearly 36% below the record high of $126,080 reached in October of the previous year. Despite this week's decline, analysts have characterized the asset as having emerged from the bear market that dominated most of 2026 following a rally in August and September.
