Bitcoin rebounds above $82,000 after inflation data sparks dip below $80,000

Bitcoin rebounded above $82,000 on Friday after briefly falling below $80,000, recovering from a selloff triggered by hotter-than-expected U.S. inflation data. The cryptocurrency dropped to about $79,800 following the September producer price index release before buyers stepped in, trading up 1.4% in 24 hours. September's headline PPI rose 6.3% year-over-year, exceeding forecasts of 5.3%, while core PPI hit 5% versus an expected 4.4%. The data followed Wednesday's stronger-than-expected CPI report, reinforcing concerns about persistent inflation that could keep Federal Reserve policy restrictive. Approximately $317 million in crypto derivatives were liquidated over 24 hours, with long positions accounting for $168 million. Bitcoin reclaimed the $80,000-$81,500 support zone, which overlaps with the estimated cost basis of U.S. spot ETF holdings near $81,500. Ethereum saw the largest altcoin liquidations at about $73 million, briefly falling to $2,324 before recovering. A sustained break below support could trigger further liquidations, with the next on-chain reference near $78,000.