Bitcoin Just Fell Below $80,000: What Triggered the Selloff?

Bitcoin's fall below $80,000 appears to be a continuation of the selling pressure building throughout the week, with a fresh inflation shock today giving traders another reason to sell.

Today on October 15, US wholesale inflation came in far hotter than expected. This followed yesterday's disappointing consumer inflation report, extending fears that the Federal Reserve could raise interest rates again.

The selloff is being amplified by leveraged traders being forced to close positions. The wider stock market, particularly technology shares, is also under pressure.

Another Inflation Shock

The US Producer Price Index (PPI), released at 8:30 a.m. New York time today, recorded its largest monthly increase since March 2022.

Energy prices were a major contributor, with wholesale gasoline prices jumping 20.3% in September.

This matters for investment sentiment because higher production costs can eventually feed into consumer prices.

For financial markets, it raises the possibility of interest rates remaining elevated or increasing further.

Yesterday's CPI report started the latest macroeconomic shock. Today's PPI report reinforced it, adding pressure to an already weakening Bitcoin market.

Institutional Buyers are Withdrawing Money From Bitcoin