BTC buyers attempted to defend $80,000 support after September US producer inflation overshot expectations by 100 basis points for the largest monthly gain since March 2022

Bitcoin (BTC) dipped below $80,000 on Thursday as US Producer Price Index (PPI) data significantly beat expectations.

Data from TradingView showed BTC/USD slipping to its lowest levels since Sept. 18, declining as much as 1.8% on the day, before rebounding to around $81,000.

September PPI came in at 6.3%, a full 100 basis points above its anticipated level, while core PPI rose to 5% versus an expected 4.4%, per data from the Bureau of Labor Statistics (BLS).

“The September increase is the largest advance since rising 1.7% in March 2022. On an unadjusted basis, the index for final demand climbed 6.3% for the 12 months ended in September, the largest 12-month increase since moving up 6.4% in December 2022,” an official news release confirmed.

The numbers come a day after the Consumer Price Index (CPI) also overshot estimates, causing crypto and risk assets to fall. Risk assets were already under pressure from a tech sell-off centered in South Korea, where the KOSPI Composite Index fell 7.5% on Thursday.

Economist Mohamed El-Erian described PPI as “even more striking” than the CPI result. El-Erian and others noted that US bond yields were not rising on the back of higher inflation numbers. The US 10-year bond yield was down almost 3% at the time of writing, at its lowest levels since Sept. 23.

Robin Brooks, former chief FX strategist at Goldman Sachs, repeated earlier findings which suggested that yields had “decoupled” from US macro data as market priorities switched to the government’s handling of the federal budget deficit.

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