Bitcoin Slips Below $81,000 as Hot US Inflation Revives Fed Rate Concerns

Bitcoin traded near Rs. 76.6 lakh on Thursday as the cryptocurrency market faced renewed pressure from hotter-than-expected US inflation and rising Treasury yields, strengthening concerns that the Federal Reserve could maintain tighter monetary policy for longer. Ethereum (ETH) was trading near Rs. 2.23 lakh, while major altcoins showed mixed movements. Market participants said institutional buying provided some support, with US spot Bitcoin exchange-traded funds (ETFs) recording fresh inflows, but elevated yields, profit-taking, and technical resistance continued to limit price gains. According to CoinGecko data, Bitcoin traded at $80,900 (roughly Rs. 76.8 lakh), while Ethereum was priced at $2,360 (roughly Rs. 2.23 lakh).

The world's largest cryptocurrency fell 0.6 percent in the last 24 hours, according to the Gadgets 360 price tracker. Headline inflation reached 3.7 percent, compared with expectations of 3.6 percent, while core inflation stood at 2.6 percent. October 28 Fed rate hike odds rose to 54 percent from 22 percent in a day. However, spot Bitcoin ETFs recorded $175.6 million (roughly Rs. 1,668 crore) in inflows, offering some support despite weak retail sentiment.

Major Altcoins Show Mixed Momentum on Thursday

Binance Coin (BNB) was priced around $718 (roughly Rs. 68,100), while Solana (SOL) traded near $102 (roughly Rs. 9,600). XRP hovered around $1.31 (roughly Rs. 124), while Dogecoin (DOGE) traded near $0.079 (roughly Rs. 7.5). 

Rising Treasury Yields Keep Investors Cautious

Highlighting the impact of inflation and monetary policy expectations on Bitcoin, Prateek Gupta, Head of Business, Mudrex, said, “Bitcoin faces renewed selling pressure near $81,500 as hotter-than-expected US inflation strengthens the case for tighter monetary policy. September headline CPI came in at 3.7 percent versus 3.6 percent expected, while core inflation stood at 2.6 percent. Treasury yields have responded, with the 10-year reaching 5.33 percent [...] Warsh's Friday comments will be closely watched.”

Commenting on Bitcoin's price reaction to the inflation report and the outlook for interest rates, the CoinSwitch Markets Desk said, “Bitcoin's reaction to September's inflation data highlights how sensitive crypto remains to the expected path of US interest rates [...]  Persistently high inflation could keep financial conditions restrictive for longer, making upcoming inflation releases and signals from Fed officials crucial in determining whether rate expectations ease enough to support a sustained recovery in crypto markets.”

Pointing to Bitcoin and Ether's performance despite institutional outflows and broader macroeconomic pressure, Nischal Shetty, Founder, WazirX, said, “Bitcoin ETFs attracted $175.62 million (roughly Rs. 1,669 crore) and Ethereum ETFs added $24.84 million (roughly Rs. 236 crore), yet prices remained measured as macro pressure, derivatives positioning, profit-taking and technical resistance absorbed institutional demand. Futures traders may watch volume, open interest and funding for stronger confirmation before treating any recovery as sustained near term.”

Overall, analysts said Bitcoin's $80,000 support level (roughly Rs. 76.01 lakh) remains important, while resistance between $81,850 and $82,250 (roughly Rs. 77.76 lakh-Rs. 78.14 lakh) could determine its near-term direction. Until price action and trading volumes provide clearer confirmation, analysts have advised caution amid continued volatility.