Bitcoin briefly fell below $80,000 on Thursday after hotter U.S. inflation data before recovering above $82,000.
Inflation fears led to a broad liquidation of leveraged positions, but the cryptocurrency recovered after the drop.
The market snapshots gave different readings of the rebound. One report put Bitcoin at $82,000 after the fall, while another recorded a low of $79,805 in New York and a later price of $81,028.
| Measure | Recorded level |
|---|---|
| Intraday low | $79,805 |
| Later price | $81,028 |
| Daily change | Down over 1% |
| Weekly change | Down nearly 3% |
| Gap below record | Nearly 36% |
| Leveraged liquidations | Nearly $950 million |
| Spot Bitcoin ETF outflows | $261 million |
| Record | $126,080 |
Bitcoin was still lower over both the day and the week after its recovery. It remained nearly 36% below the record of $126,080 reached last October.
The price decline followed new U.S. inflation data. The Labor Department's Bureau of Labor Statistics said producer prices in September rose at their fastest pace in more than four years.
The producer price report came one day after the September Consumer Price Index was higher than expected. The sequence of reports added to concern that inflation could keep pressure on interest-rate policy.
The hotter producer inflation strengthened expectations of further Federal Reserve rate hikes, while traders bet that borrowing costs could remain higher for longer.
Inflation drove a rapid market repricing
Nearly $950 million in leveraged positions were liquidated during the sell-off. Spot Bitcoin ETFs also had $261 million in outflows.
Different readings of Bitcoin's rebound
Rebound report
One market snapshot
$82,000
- Recovered after falling below $80,000
Price snapshot
Another market snapshot
$81,028
- Low of $79,805
Bitcoin has previously performed well in low-interest-rate conditions, when lower borrowing costs can leave more liquidity available for purchases of the cryptocurrency. That makes expectations for the path of rates an important factor in the market's reaction to inflation data.
The Federal Reserve has raised interest rates this year, while its head has said that bringing U.S. inflation down is the central bank's number one priority.
Despite this week's decline, analysts have said Bitcoin has moved out of the bear market that dominated much of 2026 after a rally in August and September.
The next rate decision remains unknown
- One day before ThursdayConsumer inflation
The September Consumer Price Index came out higher than expected.
- ThursdayProducer inflation
Producer prices for September rose at their fastest pace in more than four years.
- ThursdayBitcoin sell-off and recovery
Bitcoin dipped below $80,000 before recovering above $82,000 in one market snapshot.
- End of October 2026Federal Reserve decision
The Federal Reserve is due to decide what to do with interest rates.
The pack does not establish what interest-rate decision the Federal Reserve will make at the end of October 2026. It also remains unclear whether the central bank will keep rates higher for longer.
At the end of October 2026, the Federal Reserve is due to decide what to do with interest rates.
