Bitcoin Falls Below $80K After Higher Inflation Weakens Rate Cut Expectations

Bitcoin dropped below the $80,000 level after new U.S. inflation data came in hotter than expected, reducing hopes for near-term Federal Reserve rate cuts.

Consumer inflation reportedly climbed to 3.8%, reinforcing concerns that interest rates may stay elevated for longer than markets anticipated. The sell-off triggered renewed pressure across crypto markets, with traders reducing exposure to risk assets as expectations for tighter monetary policy increased. Analysts say Bitcoin remains highly sensitive to macroeconomic data, particularly inflation and interest rate outlooks, which continue to influence liquidity and investor sentiment.

The decline also sparked liquidations in leveraged positions, adding further downside momentum as prices slipped below key support levels. While some investors still view the pullback as part of a broader consolidation phase, the market is now closely watching upcoming economic data and Fed commentary for signs of future policy direction.

Clever Robot News Desk 13^th May 2026