BREAKING: Bitcoin Dips Below $80,000 as Hot US PPI Inflation Hits 6.3% — $937 Million in Liquidations Hit Traders

 

Bitcoin briefly fell below $80,000 on October 15 after US producer price data came in much hotter than expected. Bitcoin dropped about 3.6% to near $81,500, with a low around $80,400 and a brief dip to about $79,800, before buyers pushed the price back above the $80,000 line.

The US Bureau of Labor Statistics said producer prices rose 1.3% in September, the biggest monthly rise since March 2022. On a yearly basis, wholesale inflation reached 6.3%, well above forecasts near 5.3% and the fastest yearly increase since December 2022. Energy was a big driver of the jump, with gasoline prices rising sharply during the month.

The sell-off spread across the market. Ethereum fell to about $2,325 at its low before recovering toward $2,400, and XRP slid more than 5% to near $1.30. About $937 million in leveraged positions were liquidated in 24 hours, hitting more than 176,000 traders, with long traders taking about $787 million of those losses.

For traders, the main worry is the Federal Reserve. This producer price report came just one day after a hot consumer inflation reading, and market pricing put the chance of an October rate hike at about 34%. Bitcoin also fell below its 50-day moving average, a level many traders watch to judge the short-term trend.

The $80,000 level is now the key line in the market. If Bitcoin holds above it on a daily close, buyers may try a recovery toward $82,000 to $82,500. If it closes below $80,000, selling pressure could grow again, because sentiment is fragile and traders are waiting for the Fed meeting later this month.

Read also: BREAKING: Mastercard Opens Stablecoin Spending at Hundreds of Millions of Shops — New BVNK Platform Goes Live

This post is news only, not financial advice. Always do your own research before buying or selling crypto.

Sources: Cointelegraph, CoinDesk, Crypto.news, CryptoTimes, CoinGlass