Bitcoin fell below $ 80,000 today, experiencing a short-term decline due to the weakness in investors’ risk appetite and higher than expected inflation data from the USA. Although the price reached $ 79,802 during the day, it later rose again above $ 80,000, which is considered the psychological level. In the evening hours, Bitcoin was traded between $80,700 and $80,900. This return showed that some buyers stepped in after the sales, but upward dominance was not fully achieved.
US inflation data and Fed uncertainty
The latest activity emerged after the April CPI data announced in the USA. Annual inflation rose to 3.8%, above market expectations. This data weakened the possibility of the US Federal Reserve cutting interest rates for 2026 and led to an increase in bond yields. In addition to cryptocurrencies, other risky assets such as technology stocks have also come under pressure due to inflation.
The possibility of a change in the head of the Fed also created uncertainty in the market. Following Senate approval, Kevin Warsh is expected to replace Jerome Powell. Investors are closely watching whether Warsh will focus on tight monetary policy after inflation or the interest rate cuts requested by the administration. Developments in this process increase the pressure on Bitcoin.
Geopolitical tensions and on-chain data
The renewed tension between the USA and Iran increased energy prices and increased the search for safe havens. Increasing oil and gasoline prices had an impact on the CPI, and this deepened the uncertainty in the cryptocurrency market.
According to on-chain data, major Bitcoin holders increased their purchases despite the recent pullback. It was reported that wallets holding assets between 10 and 10,000 BTC accumulated approximately 16,622 BTC, which means an increase of 0.12%. Wallets under 0.01 BTC, which included small investors, sold 28 BTC in total, recording a decrease of 0.05%. It was revealed that large players acted in a buying direction, while smaller investors acted hesitantly.
Some market observers noted that large Bitcoin holders buying during volatile periods was viewed as a supportive signal. However, simply increasing positions by large investors may not be enough for a permanent recovery.
Derivative markets, volume and technical views
On the futures side, the market remains indecisive. Open interest, which reflects leveraged positions, decreased from $29.09 billion on May 5 to $26.84 billion on May 11. This represents a decrease of approximately 7.75%. While the open interest volume decreased, negative funding rates increased, indicating that selling pressure came to the fore in derivative markets.
Market clearing platform Wintermute evaluated Bitcoin’s rise above $80,000 as a short squeeze that caused position closure rather than a healthy rise. It was stated that although open interest increased from $48 billion to $58 billion in the last month, spot transaction volumes were close to the lowest levels in two years.
CryptoAppsy According to data, Bitcoin’s recovery to $80,800 after falling to $79,802 shows that the psychological level is critical for investors.
Despite year-end predictions of $126,000, Bitcoin’s current price movement remains in a narrow band, according to analysts. Especially the price remaining horizontal around $82,000 and low volatility indicated that the decision in the market was not clear. In the short term, a strong upward move is not expected to be triggered without volume closes above $82,300.
