Higher U.S. inflation, renewed concerns over Federal Reserve interest rates and forced selling across cryptocurrency markets are putting pressure on digital assets.

NEW YORK — Bitcoin briefly fell below $80,000 Thursday as a wave of selling swept through cryptocurrency markets, extending losses fueled by hotter-than-expected U.S. inflation and fears that the Federal Reserve could keep interest rates elevated or raise them further.

The world’s largest cryptocurrency dropped to approximately $79,700 on some major trading platforms before recovering above the psychologically important $80,000 threshold. The decline followed several days of weakening prices and reflected growing investor caution across global financial markets.

The selloff has also spread beyond Bitcoin, with Ether and other cryptocurrencies suffering sharper percentage losses as traders reduce exposure to volatile assets.

Inflation reignites pressure on cryptocurrencies

The latest selling intensified after U.S. consumer inflation accelerated to 3.7% annually in September, above economists’ expectations of 3.6%.

The report showed consumer prices rising 0.6% from the previous month, with higher gasoline costs accounting for much of the increase.

The unexpected acceleration raised concerns that the Federal Reserve may need to maintain restrictive monetary policy for longer than investors anticipated.

Higher interest rates generally increase the appeal of interest-bearing assets and raise financing costs, making speculative investments, including cryptocurrencies, less attractive.

Bitcoin has increasingly traded alongside other risk-sensitive investments, particularly technology stocks, rather than consistently behaving as a safe haven during periods of financial stress.

Forced liquidations deepen the selloff

The downturn has been amplified by leveraged cryptocurrency trading.

When Bitcoin falls sharply, exchanges may automatically close positions held by investors who borrowed heavily to increase their exposure. Those forced liquidations can accelerate selling and push prices lower.

Industry market data indicated that approximately $483 million in leveraged Bitcoin and Ether futures positions were liquidated over a recent 24-hour period.

The selling coincided with substantial declines across Asian equity markets, including sharp losses in South Korea and Japan, as investors reacted to inflation concerns and weakness in technology stocks.

A sharp reversal from last year’s record

Bitcoin’s latest decline comes one year after the cryptocurrency climbed above $126,000 in October 2025.

At $80,000, Bitcoin is approximately 37% below that record, underscoring the volatility that continues to define the cryptocurrency market despite growing institutional participation.

Digital assets have gained broader acceptance through regulated investment products, financial institutions and corporate holdings. However, those developments have not insulated Bitcoin from broader shifts in investor sentiment.

The latest decline also raises questions about whether Bitcoin can sustain investor demand when inflation remains elevated and borrowing costs are high.

What investors are watching

The immediate focus is whether Bitcoin can stabilize around $80,000 or whether continued selling will drive prices lower.

Investors are also monitoring the Federal Reserve’s October 27–28 policy meeting, where officials will assess inflation, employment and broader financial conditions.

A decision to maintain interest rates could provide some relief if investors had anticipated another increase. Conversely, renewed signals of tighter monetary policy could prolong pressure on cryptocurrencies and other speculative assets.

For investors, the latest selloff illustrates a familiar reality: Bitcoin’s long-term institutional growth has not eliminated its sensitivity to inflation, interest rates and rapid changes in global market sentiment.

The next test is whether buyers return around $80,000 or whether the latest retreat develops into a broader correction across digital assets.

JBizNews Desk | New York

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