Bitcoin Drops to $80,000 Mark: US September Inflation Exceeds Expectations, Can BTC Hold Key Support?

TradingKey - As of the Asian trading session on October 15, Bitcoin (BTC) extended its intraday decline, briefly dipping rapidly to around $80,000 and hitting a low of $80,226, before buying interest re-emerged to push prices swiftly back above $81,500.

Bitcoin Daily Price Chart, Source: TradingView

This latest sell-off extended the correction following the release of the U.S. September CPI data. Data showed that the U.S. September CPI rose 3.7% year-over-year, while core CPI rose 2.6% year-over-year, with core inflation coming in higher than market expectations. Following the data release, expectations for further Fed rate hikes temporarily heated up, placing simultaneous pressure on U.S. tech stocks and crypto assets. Bitcoin pulled back sharply from previous levels near $84,000 and broke below $82,000.

Meanwhile, recent continuous liquidations of leveraged positions in the crypto market have also amplified price volatility. During the previous decline, 24-hour total market liquidations once reached approximately $1.18 billion, with over $1 billion coming from long positions. As prices dropped toward the $80,000 level, some highly leveraged longs were further forced into liquidation, accelerating Bitcoin's downward move in a short period.

However, Bitcoin bounced back quickly after approaching $80,000, indicating that buying support still exists in this area. During several previous pullbacks, buying interest stepped in near $80,000 to $81,000. At the same time, U.S. Treasury yields pulling back from high levels and the U.S. Dollar Index falling from an 18-month high also relieved some macro pressure.

In the short term, $80,000 remains a key support level for Bitcoin. If the price can stabilize above this level, the market will continue to focus on overhead resistance near $83,000 to $84,500. If it breaks decisively below $80,000 again, it may further test the September 15 low near $75,000.