Bitcoin Drops Below $80K as US Producer Price Inflation Hits 6% in April 2026

Bitcoin’s price dropped below the $80,000 mark on May 13, 2026, after the latest US Producer Price Index (PPI) data revealed a sharp increase in inflation, stoking fears of tighter monetary policy and reduced liquidity.

Bitcoin Falls Below $80,000 Amid Rising Inflation Concerns

The cryptocurrency’s price slipped from the low $81,000 range to as low as $79,706, with the session’s lowest point recorded at $79,557. The breach of the $80,000 threshold marked a critical shift in intraday market structure, turning the round number into a key tactical resistance level.

US PPI Surges to 6%, Exceeding Expectations

The April 2026 PPI report showed a 1.4% month-over-month increase, far surpassing the 0.5% consensus and the prior 0.7% reading. On an annual basis, the PPI rose to 6.0% from 4.3%, exceeding the 4.9% forecast.

Core PPI also climbed, with a 1.0% month-over-month rise compared to the expected 0.3%, while the year-over-year core PPI increased to 5.2% from 4.0%. The narrower measure, which excludes food, energy, and trade services, rose 0.6% month-over-month and 4.4% year-over-year.

PPI Follows Hotter-Than-Expected CPI Data

The PPI surprise came just one day after the April 2026 Consumer Price Index (CPI) report, which showed headline inflation accelerating to 4.8% year-over-year from the prior 3.3%, above the 4.5% consensus.

Market Repricing After Inflation Data

The unexpected inflation readings significantly altered market expectations, increasing pressure on the Federal Reserve to delay potential rate cuts. The broad-based PPI increase also signaled rising costs throughout the supply chain, directly impacting the Personal Consumption Expenditures (PCE) calculation and reducing the likelihood of a dovish policy response amid rising energy prices.

Cross-Asset Selloff: Equities, Treasuries, and the Dollar Strengthen

The inflation-driven repricing extended across multiple asset classes. The SPY ETF declined from above $740 to $737, with a session low near $735.48. Long-term Treasury yields rose, with the 30-year yield reaching 5.034% and the 10-year yield at 4.471%. The US Dollar Index held near 98.49, while WTI crude oil traded around $102.15.

Bitcoin’s Intraday Structure Weakens Below $80K

Bitcoin’s immediate challenge is regaining the $80,000 level. A swift recovery could limit the damage to a short-term flush, but continued trading below this threshold risks exposing the $79,557 low and testing seller dominance in the prior support zone.

Following the initial post-PPI selloff, markets showed signs of stabilization. Bitcoin briefly rebounded from $79,557 toward $79,700, while SPY recovered from the $735 area, and Treasury yields pulled back slightly from session highs. However, renewed strength in crude oil and a firm US dollar kept broader macro pressures elevated, leaving price action reactive rather than decisively recovered.

Next Key Signals for Bitcoin and Markets

The critical threshold for Bitcoin remains $80,000. A sustained recovery above this level, coupled with stabilization in SPY and a halt in rising Treasury yields, would signal a potential end to the PPI-driven selloff. Until then, the inflation shock continues to dictate market direction, and Bitcoin’s intraday structure remains fragile.

Related Reading

• Bitcoin was waiting for cuts. Hot CPI inflation data just put hikes back on the table

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