Bitcoins 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 yesterdays disappointing consumer inflation report, extending fears that the Federal Reserve could raise interest rates again.
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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.
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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
US spot Bitcoin ETFs have been losing capital during this period.
US Bitcoin ETF Inflows in October
The figures reveal the longer-running weakness:
- Last week, October 5–9: approximately $679 million in net ETF outflows.
- This week, October 12–14: another $151.1 million in net outflows.
- Yesterday alone: $261.4 million withdrawn, reversing Tuesdays $175.7 million inflow.
The market has been losing a source of institutional demand even before todays inflation surprise.
When investors are withdrawing money from Bitcoin funds, there is less consistent buying pressure to absorb selling from existing holders.