Bitcoin briefly traded below $80,000 on Thursday after US Producer Price Index (PPI) data significantly exceeded expectations. The September PPI measured 6.3% against anticipated levels of 5.3%, representing the largest monthly advance since March 2022, according to the Bureau of Labor Statistics.
Core PPI also outpaced forecasts, rising to 5% compared to expected growth of 4.4%. The 100-basis-point overshoot in headline PPI prompted selling pressure across crypto and broader risk assets.
BTC/USD declined as much as 1.8% during Thursday's trading, reaching its lowest levels since September 18 before recovering to around $81,000. The broader selloff was compounded by a technology-sector decline centered in South Korea, where the KOSPI Composite Index fell 7.5%.
The inflation surprise came one day after Consumer Price Index data also exceeded market expectations, adding downward pressure on Bitcoin and other risk assets.
Yield Decoupling and Market Focus
Economist Mohamed El-Erian characterized the PPI result as "even more striking" than the preceding CPI data. Despite the higher inflation readings, US 10-year bond yields declined, falling to their lowest levels since September 23.
Former Goldman Sachs chief FX strategist Robin Brooks noted that bond yields have "decoupled" from US macroeconomic data, with market attention shifting toward the federal budget deficit trajectory. This shift represents a notable change from earlier in the year, when positive data surprises correlated more strongly with yield movements.
Technical Support Levels Under Scrutiny
Bitcoin price analysis highlighted two key support zones: the 21-week and 50-week exponential moving averages at approximately $76,144 and $78,459, respectively. Analyst Rekt Capital suggested that Bitcoin could retest these levels while maintaining its overall bullish structure, noting that such deviations in early-stage bull markets are historically recoverable.
Bitcoin remained below $82,500 to $82,800, a support zone that has drawn interest in recent weeks. Analyst Aksel Kibar observed that Bitcoin's latest weekly close around $83,700 lacked strength as a sustained breakout, indicating potential for wider consolidation between $60,000 and $82,800.
