Wholesale prices jump 6.3%, the hottest since 2022, and bitcoin briefly loses $80,000 before clawing back to $82,000

A day after hot consumer inflation, the wholesale numbers came in hotter still. The Bureau of Labor Statistics said on Thursday that its producer price index for final demand rose 1.3% in September and 6.3% from a year earlier. Economists had expected an annual rise of about 5.3%, according to Charles Schwab and FXStreet. The core measure, which strips out food, energy and trade services, rose 0.5% in the month and 5.0% over the year. Energy did most of the damage: it climbed 10.8% in September, and gasoline jumped 20.3%.

Bitcoin, already down overnight, slipped to about $79,800 after the release, its first trade under $80,000 in a month, before buyers stepped in. FXStreet put it at about $82,300 at 11:20am Pacific, up 0.6% over 24 hours. CoinGlass data cited by FXStreet showed about $930 million in liquidations over 24 hours, roughly $780 million of it from traders betting on higher prices.

The question for crypto is the Federal Reserve. CME FedWatch figures cited by CoinDesk and crypto.news put the chance of a quarter-point hike at the October 27-28 meeting at roughly 30%. Analysts cited by FXStreet are watching $80,000 as support; the average cost basis of US spot bitcoin ETF holders sits near $81,500.