Bitcoin Drops Below $81,000 After Inflation Surprise as On-Chain Signals Diverge
Bitcoin and Ethereum fell after US September inflation exceeded forecasts, with BTC down 3.8% and ETH down 6.6%, while crypto liquidations totaled $972.44 million over 24 hours. Glassnode's on-chain metrics present a mixed near-term view but suggest longer-term recovery conditions are forming.
September CPI increased 0.6%, pushing annual inflation to 3.7% from 3.4% in August and above the 3.6% forecast. Core inflation reached 2.6% versus 2.5% expected, while gasoline jumped 9.1% and supplied over half the monthly rise.
After the Fed’s September move to 3.75%–4.00%, CME FedWatch put another hike at 31.6% for October 27–28. Crypto’s total value slipped 2.7% to $2.83 trillion; liquidations hit $972.44 million, mostly longs. BTC briefly touched $80,500 before recovering near $80,800.
Retail crypto traders and leveraged investors may feel the immediate strain, as forced liquidations can amplify losses and reduce confidence. Higher inflation and possible Fed tightening could also affect households through broader borrowing costs and risk-asset prices, though crypto remains a smaller part of most portfolios. Businesses tied to digital assets, including exchanges and ETF providers, may see activity and revenue fluctuate. The episode could reinforce caution among newcomers, while long-term holders may view on-chain recovery signs as reason to stay engaged.