by Coinstrooper Crypto Articles
Quick Take
  • 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.

What Happened

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.

When investors are withdrawing money from Bitcoin funds, there is less consistent buying pressure to absorb selling from existing holders.

Market Context

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

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.

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

US spot Bitcoin ETFs have been losing capital during this period.

The market has been losing a source of institutional demand even before today’s inflation surprise.

Why It Matters

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.

Details

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.

Another Inflation Shock

Institutional Buyers are Withdrawing Money From Bitcoin

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Yesterday alone: $261.4 million withdrawn, reversing Tuesday’s $175.7 million inflow.

The post Bitcoin Just Fell Below $80,000: What Triggered the Selloff? appeared first on BeInCrypto.