Bitcoin falls below $80K as hot US inflation data rattles crypto markets

Bitcoin price has fallen below $80,000 after fresh US inflation data and rising rate hike expectations triggered renewed selling pressure across crypto markets on May 13. According to Coingecko, Bitcoin (BTC) was trading near the $79,000 after losing the key psychological support level that traders had defended throughout the week. The decline followed a volatile session in which BTC briefly attempted to stabilise above $81,000 before sellers regained control after the latest US Producer Price Index report. Elsewhere across traditional markets, Treasury yields and the US dollar moved higher after the inflation release, adding more pressure on speculative assets. Bitcoin, which has increasingly traded in line with liquidity conditions and macro sentiment, reacted quickly as risk appetite weakened. Why is Bitcoin price going down? Persistent inflation fears have become the main driver behind the latest Bitcoin pullback. Fresh US Producer Price Index data released today showed headline producer inflation surging 6% year over year, far above economist forecasts of around 4.9%, intensifying concerns that price pressures across the economy remain difficult to contain. Core PPI, which excludes food and energy costs, climbed 5.2%, its highest level in more than three years, while Final Demand less Foods, Energy, and Trade Services rose 4.4%. Earlier in the week, April’s Consumer Price Index report had already shown inflation rising 3.8% year over year, slightly above market expectations of 3.7%. The combination of elevated CPI and an even hotter PPI print has strengthened the higher-for-longer interest rate narrative, weighing on crypto and equities. Because rising producer costs often pass through to consumers over time, traders increasingly expect inflation to remain elevated in the coming months. Higher interest rates typically reduce demand for non-yielding assets such as Bitcoin because investors can earn stronger returns from government bonds and cash-based instruments. At the same time, technical resistance near the $82,000 region has repeatedly capped Bitcoin’s upside momentum. Bitcoin has failed to secure a clean breakout above the zone several times, and this level also aligns closely with the 200-day moving average. Traders are likely treating the recent rallies toward this level as profit-taking opportunities, leading to repeated pullbacks into the high-$79,000 to low-$80,000 range. Adding to market stress, oil prices also climbed sharply during the session, reviving concerns that energy-driven inflation could keep monetary conditions restrictive for longer. Analysts tracking macro flows said rising fuel costs often increase inflation worries across financial markets, especially when central banks are already cautious about cutting rates. Meanwhile, geopolitical tensions in the Middle East continued pushing investors toward traditional safe-haven assets. Although Bitcoin is frequently compared with gold during periods of uncertainty, recent trading behavior has shown BTC moving more closely with equities during risk-off conditions. While Gold and the US dollar both attracted inflows, crypto markets weakened. Liquidation activity added another layer of downside pressure after Bitcoin lost support levels during the US trading session. CoinGlass liquidation heatmap data showed large leveraged positions concentrated between roughly $80,000 and $85,500, creating conditions for rapid price swings once volatility accelerated. Over the past 24 hours, over $244 million worth of long positions were liquidated, with over $82 million coming from Bitcoin. Crypto liquidation heatmap. Source: Coinglass. Will Bitcoin price go up? According to crypto analyst Daan Crypto Trades, the Bitcoin price needs to clear the $82,000 resistance zone to be able to move higher. BTC/USDT price chart. Source: Daan Crypto Trades on X. “But until then, we are trading at resistance. Stocks were shaky yesterday but recovered nicely already. Market m