Oct. 16 (CandyPulse) — Bitcoin gave traders a scare, then a relief rally, all in a matter of hours. The world's largest cryptocurrency briefly fell below $80,000 on Thursday after hotter-than-expected U.S. inflation data, before buyers rushed in and pushed it back above $82,000.
Key takeaways
The trigger was inflation. September's Producer Price Index (PPI) came in hot, with headline producer inflation rising 6.3% year over year. That raised fresh worries that the Federal Reserve could keep raising interest rates.
Higher rates tend to hurt risk assets like crypto, so bitcoin slid, briefly breaking below the important $80,000 mark.
The dip did not last. Buyers treated the drop as a chance to buy, and bitcoin climbed back above $82,000 within hours. On Friday it was trading around $82,287, up about 0.7%, after moving between $79,844 and $82,508. Bitcoin's market value sat at roughly $1.65 trillion.
| Level | Why it matters |
|---|---|
| ~$79,694 | Thursday's intraday low |
| $80,000 | Key psychological line that briefly broke |
| $82,000–$83,000 | Zone analysts say needs to hold to steady sentiment |
| $84,000 | Next resistance level traders are watching |
The fast swing caught many leveraged traders off guard. About $930 million in derivative positions were liquidated over 24 hours, according to Coinglass data, with long positions making up $780 million of that. In other words, traders betting on higher prices took most of the hit.
For now, bitcoin has shown it still has strong buyers waiting below $80,000. Whether it can push higher depends on what the Fed says next.
Disclaimer: This article is for information only and is not financial advice. Crypto assets are volatile and can lose value. Always do your own research before making any investment decision.
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