Bitcoin fell below $80,000 on May 13 after the US released a hotter-than-expected Producer Price Index showing 6.0% annual inflation in April—matching 2022 peaks and triggering a broad selloff across crypto and equities. BTC dropped from a session high near $81,000 to a low of $79,557, closing the day at $79,706, as traders repriced expectations for Federal Reserve rate cuts and shifted to potential rate hike scenarios. The move reflects renewed macro pressure on risk assets following an unexpectedly elevated CPI report the prior day.
PPI Data Reshapes Rate Cut Expectations
The April PPI final demand reading of 6.0% year-over-year significantly exceeded consensus estimates of 4.9% and the prior month’s 4.3%. On a monthly basis, final demand PPI rose 1.4%—nearly three times the 0.5% consensus forecast. Core PPI, which excludes food and energy, printed at 5.2% annually and 1.0% monthly, above both consensus and prior readings. These figures directly feed into the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index, constraining room for dovish policy signals. Energy prices added pressure, with WTI crude climbing to $102.15 per barrel during the session.
Cross-Asset Selloff Reflects Macro Repricing
The inflation surprise triggered immediate repricing across markets. The S&P 500 declined from above $740 to $737, with a session low of $735.48. The 30-year Treasury yield rose to 5.034% and the 10-year to 4.471%, reflecting expectations that higher producer costs may force the Fed to hold rates steady longer or even consider hikes. The US Dollar Index strengthened to 98.49. Bitcoin’s 24-hour decline of 1.20% understates the intraday volatility, though the asset remains up 11.13% over 30 days. BTC market cap stands at $1.6 trillion with 24-hour volume of $31.85 billion across 20.03 million circulating coins.
Support Levels and Technical Exposure
The $80,000 level represents critical support for Bitcoin. Failure to reclaim it exposes the session low of $79,557 and tests whether sellers maintain control into the close. Bitcoin trades 36.84% below its October 6, 2025 all-time high of $126,198.07. The confluence of hot inflation data, rising energy costs, and Fed repricing removes near-term tailwinds for risk assets. Market participants now monitor whether the May PPI reading signals a sustained inflation reacceleration or represents temporary base effects from prior-year comparisons.
