Crypto Prices Crash, Bitcoin Falls Below $82,000, Why Cryptos Are Nervous About Upcoming US CPI Inflation?

Cryptocurrencies are trading under pressure on Tuesday as investors get jittery over strengthening in US dollar ahead of US CPI inflation data this week. Bitcoin fell below the $82,000 mark, while other cryptos like Ethereum, BNB, and Solana also plunged sharply by 4% to 6%. The CPI data has always been crucial for a market like crypto, which is riskier.

Bitcoin Price Crashes

At the time of writing, Bitcoin traded at $81,948.51, down 2% in the last 24 hours, with a market cap of $1.6 trillion. In the past 24 hours, $26.1 billion of Bitcoin has exchanged hands. The latest decline extends its fall to nearly 5% in 7-day performance and 29% on year-on-year performance.

The selloffs also reached both long- and short-positioned investors, with reportedly 118,142 traders impacted. As per Coinglass' liquidation figures, up to $488.61 million had been wiped out in leveraged crypto positions, comprising of long positions of $406.48 million and short positions of $82.14 million. Put differently, as per Bitcoin.com news, more than $83 of every $100 liquidated came from traders betting on higher prices. Ethereum led individual assets with $115.19 million in liquidations, followed by bitcoin at $106.61 million.

Factors That Are Pulling Bitcoin Down:

"Bitcoin is trading around $82,000 as the crypto market faces renewed selling pressure. Recent outflows from US spot Bitcoin ETFs point to cautious institutional demand. Higher oil prices and a stronger US dollar are adding to uncertainty. Investors are also watching US inflation data due on October 14, which could influence expectations for the Federal Reserve's next rate decision," said Vikram Subburaj, CEO, Giottus.com.

He also pointed out that large-cap altcoins are also under pressure. Ethereum is down 4.84% over 24 hours, BNB has fallen 4%, XRP is lower by 5.94%, and Solana has declined 6.17%. TRON has been relatively resilient, slipping 1.38%. This broad weakness reflects reduced appetite for risk across the crypto market.

1. US Dollar Hits 18-Months High

The US dollar gained momentum to reach its highest level since April 2025 to trade around $102.5 against basket of currencies. Investors await for crucial inflation figures which is likely to play a role in US Federal Reserve's decisions in this month's policy.

The US CPI inflation data is scheduled on Wednesday, while the producer inflation data will be out on Thursday.

A stronger dollar means traders are still not convinced that Fed is done with hiking rates, as per crypto fanatic.

2. Bitcoin ETF:

U.S. spot bitcoin exchange-traded funds (ETFs) reported outflows of $679 million to $681 million from October 5-9 trading week. The flows in Bitcoin ETF has slowed after they reached $1.7 billion across September 21 and 22. In the past 13 sessions, Bitcoin ETF only added up to $232 million inflows.

3. Treasury Yields:

The yield on the US 10-year Treasury note fell below 5.2% on Tuesday as bond trading resumed after a market holiday, extending its retreat from 24-year highs after the recent global bond selloff lost momentum. Investors also turned their attention to key inflation data due this week that could influence the Federal Reserve's monetary policy outlook, as per Trading Economics.

4. US CPI Inflation Data

Both the CPI and PPI data are going to be crucial. As per Trading Economics report, markets are pricing in roughly an 80% probability that the Fed will keep interest rates unchanged this month, while assigning nearly an 88% chance of a rate hike in December. Investors will also assess existing home sales figures and remarks from Fed officials Christopher Waller, Tom Barkin and Susan Collins on Tuesday. Meanwhile, escalating geopolitical tensions in the Middle East and Eastern Europe continued to support elevated oil prices, adding to inflationary pressures.

What Should Investors Do?

In Subburaj's view, investors should avoid chasing rebounds or making large bets during heightened volatility. Bitcoin's $82,000 support zone is important. Staggered buying, disciplined position sizing and close monitoring of ETF flows and US inflation data can help manage risk.

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