Bitcoin loses $80k because US PPI just hit 6% matching 2022 levels, stoking inflation fears

Bitcoin just fell below $80,000 as a hotter-than-expected US inflation print pushed crypto and equities lower.

$BTC price slipped from the low $81,000 area into $79,706, with the session low marked near $79,557. The break turned $80,000 from a round-number reference into the first tactical line for intraday structure.

The move followed the April US Producer Price Index. Final demand PPI rose 1.4% month over month, far above the 0.5% consensus and the prior 0.7% reading.

The annual rate accelerated to 6.0% from 4.3%, above the 4.9% consensus. Core PPI rose 1.0% month over month against expectations for 0.3%, while core PPI year over year moved to 5.2% from 4.0%.

Trading Economics data also shows the narrower measure excluding food, energy, and trade services also firmed, rising 0.6% month over month and 4.4% year over year.

The PPI surprise followed yesterday’s CPI report, in which headline consumer inflation accelerated to 4.8% year over year from the prior 3.3% reading, above expectations of 4.5%.

That mix changes the market’s inflation map. A broad upside miss in producer prices pressures the Fed’s path because it feeds directly into the cost pipeline and parts of the PCE calculation. It also reduces room for a benign rate reaction when energy is rising at the same time.

The cross-asset response clearly showed the repricing. SPY sold off from above $740 to $737, with a lower wick extending toward $735.48. Long-end rates moved higher, with the 30-year Treasury yield around 5.034% and the 10-year yield around 4.471%. The US Dollar Index held near 98.49, while WTI crude traded around $102.15.

Bitcoin’s immediate issue is acceptance below $80,000. A quick reclaim would narrow the damage to an event-driven flush. Continued trade below that level leaves the $79,557 low exposed and makes every failed bounce into the prior support zone a test of seller control.

Markets attempted a modest stabilization after the initial post-PPI selloff, but the rebound remained fragile. Bitcoin briefly recovered from the $79,557 low, rising toward $79,700, while SPY bounced off the $735 area and Treasury yields pulled back slightly from session highs.

However, renewed buying in crude and a firm US dollar are still keeping broader macro pressure elevated, leaving cross-asset price action reactive rather than decisively recovered.

The next signal is simple: $BTC needs to recover $80,000 while SPY stabilizes and yields stop rising. Until that sequence appears, the PPI shock remains the active driver, and Bitcoin’s intraday structure stays broken.