Bitcoin just fell below $80,000 as stronger-than-expected inflation in the US pushed down cryptocurrencies and stocks.
BTC price fell from low $81,000 to $79,706, hitting a session low around $79,557. This break changed the $80,000 from round number basis to the first tactical line of the intraday structure.
This move was in response to the US producer price index in April. Final demand PPI rose 1.4% month-on-month, well above the consensus of 0.5% and the previous estimate of 0.7%.
The annualized rate accelerated from 4.3% to 6.0%, beating the consensus of 4.9%. Core PPI rose 1.0% month-on-month, compared to the expected 0.3%, and core PPI year-on-year rose from 4.0% to 5.2%.
According to trade and economic data, narrow indicators excluding food, energy and trade services were also strong, increasing by 0.6% month-on-month and 4.4% year-on-year.
The PPI surprise follows yesterday’s CPI report, where headline consumer inflation accelerated to 4.8% year-on-year from 3.3% previously, beating expectations of 4.5%.
The combination changes the market inflation map. A large upside in producer prices will be reflected directly in the cost pipeline and part of the PCE calculation, putting pressure on the Fed’s path. It also reduces the scope for benign rate reactions if the energy is rising at the same time.
The cross-asset reaction clearly indicated a re-pricing. SPY sold above $740 to $737, with the lower wick extending towards $735.48. Long-term interest rates rose, with the 30-year US Treasury yield at approximately 5.034% and the 10-year Treasury yield at approximately 4.471%. The US dollar index held steady near 98.49 and WTI crude oil traded around $102.15.
The immediate price question for Bitcoin is whether it will be accepted at below $80,000. Rapid retrieval limits damage to event-driven flashes. Continuing to trade below that level would leave the $79,557 low exposed and test sellers’ control each time it fails to rebound to the previous support zone.
After the initial post-PPI decline, the market attempted to moderately stabilize, but the rebound remained fragile. Bitcoin briefly recovered from a low of $79,557 and rallied towards $79,700, while SPY rebounded from the $735 area and US Treasury yields retreated slightly from session highs.
However, renewed oil buying and a strong US dollar continue to lift broad macro pressures, leaving price movements across assets reactive rather than decisively recovering.
The next signal is simple. BTC needs to recover $80,000 until SPY stabilizes and yields stop rising. Until that sequence emerges, PPI shocks will remain an active factor and Bitcoin’s intraday structure will remain broken.
(Tag translation) Bitcoin
