Bitcoin drops below $80,000 amid inflation shocks and ETF outflows

Bitcoin fell below $80,000, driven by ongoing selling pressure, a hotter-than-expected US wholesale inflation report, and a disappointing consumer inflation report from the previous day. The US Producer Price Index (PPI) recorded its largest monthly increase since March 2022, largely due to a 20.3% jump in wholesale gasoline prices in September, raising fears of further Federal Reserve interest rate hikes. Institutional demand is weakening, with US spot Bitcoin ETFs seeing net outflows of approximately $679 million last week (October 5–9) and $151.1 million this week (October 12–14), alongside a $261.4 million withdrawal yesterday alone.