Bitcoin falls below $80,000 after producer inflation tops expectations

Bitcoin fell below $80,000 on Thursday, October 15, after the U.S. producer price index came in well above expectations. At one point, the cryptocurrency hit its lowest level since September 18 and dropped as much as 1.8%. Shortly afterward, the price recovered to near $81,000.

Over the twelve months through September, the index rose 6.3%. That figure was 1 percentage point above forecast, and the core index reached 5%, compared with an expected 4.4%. It was the largest monthly increase since March 2022.

The report came one day after the consumer price index also exceeded estimates, and risk assets were already under pressure. In South Korea, the Kospi index fell 7.5% on Thursday in a wave of selling in technology stocks.

Economist Mohamed El-Erian said the producer data was even more striking than the consumer figures. Even so, the yield on the 10-year U.S. Treasury note fell to its lowest level since September 23.

Robin Brooks, former currency strategist at Goldman Sachs, says the relationship between inflation surprises and long-term interest rates dropped from about 0.6 at the start of 2026 to below zero by the end of August. According to him, interest rates have decoupled from economic data, and the market has started to focus on the government's budget deficit.