Bitcoin Price Drops Below $80,000 Amid Stronger-Than-Expected Inflation Data

The latest inflation data from the US has sent shockwaves through the cryptocurrency market, causing Bitcoin's price to drop below $80,000.

The US Bureau of Labor Statistics reported that producer price inflation remains elevated, with energy costs being a key driver. The report showed that annual PPI rose to 6.0% in April, above market forecasts, and monthly PPI increased 1.4%, far above expectations.

As a result of the strong inflation data, traders have reduced their leveraged exposure to Bitcoin, with open interest falling by around $1.25 billion across several exchanges. This move does not necessarily confirm a long-term bearish trend, but it shows that traders are reacting quickly to the new economic data.

Despite the drop in price, some spot-market data remains more constructive. Coinbase spot volume delta has turned sharply positive over the past two weeks, showing renewed buy-side activity as Bitcoin moved back into the low-$80,000 range. This suggests that some US-based and institutional buyers have returned, which could help absorb selling pressure near current levels.