Bitcoin fell towards $81,000 on Thursday, October 15, as higher-than-expected US inflation revived concerns about interest rates staying elevated for longer.
The decline extended across major cryptocurrencies, with Ethereum, XRP and Solana also trading lower amid selling pressure and liquidations in leveraged positions.
Bitcoin was trading around $81,500, down about 2% over 24 hours, according to market commentary from crypto platforms.
Why is Bitcoin falling today?
US consumer prices rose 3.7% year-on-year in September, against expectations of 3.6%, while core inflation stood at 2.6%, according to figures cited by analysts. The data has prompted investors to reassess the Federal Reserve’s interest-rate outlook.
Purvang Mashru, Lead Analyst at BitDelta India, said higher Treasury yields and a stronger dollar had added to the pressure on cryptocurrencies.
CoinSwitch’s Markets Desk also linked Bitcoin’s decline to changing expectations around US monetary policy.
The weakness has coincided with a broader sell-off in global equities.
Minal Thukral, Executive Vice President–Growth and Crypto Business Head at CoinDCX, pointed to declines across crypto assets and global stock markets, alongside a fall in the Crypto Fear and Greed Index to 48, a reading classified as neutral.
How are other cryptocurrencies performing?
Ethereum and several large-cap altcoins, including XRP, Solana, BNB, Dogecoin and Cardano, also declined. Smaller tokens recorded sharper losses in some cases.
Riya Sehgal, Research Analyst at Delta Exchange, said the decline had triggered a significant unwinding of leveraged long positions. Delta Exchange cited about $944 million in crypto liquidations over the preceding 24 hours, according to its reporting window.
Avinash Shekhar, Co-Founder and CEO of Pi42, highlighted a rise in Bitcoin open interest even as prices fell. Open interest measures outstanding derivatives contracts; an increase during a decline can indicate that new positions are being opened, although it does not establish whether traders are betting on further losses or a recovery.
Are institutional investors still buying Bitcoin?
Institutional flows have been mixed.
Prateek Gupta, Head of Business at Mudrex, pointed to spot Bitcoin ETF inflows despite weak retail sentiment. However, Vikram Subburaj, CEO of Giottus, noted that US spot Bitcoin ETFs recorded outflows on October 14, reversing the previous session’s inflows.
Nischal Shetty, Founder of WazirX, highlighted inflows into both Bitcoin and Ethereum ETFs during the period covered by his commentary. He said the limited price response indicated that institutional demand was being offset by macroeconomic pressure, derivatives liquidations and profit-taking.
These mixed flows make ETF activity an important indicator to monitor, but daily inflows alone do not establish the direction of the market.
What Bitcoin price levels should investors watch?
Analysts are watching the $80,000-$81,500 region for signs of stabilisation.
Subburaj identified $81,300-$81,500 as an important support zone, with $80,000 the next level to watch. Sehgal said a sustained break below $80,000 could expose Bitcoin to the $78,000-$79,500 range.
On the upside, a recovery above $82,000-$83,200 could improve the short-term outlook, according to Delta Exchange.
Shetty said Bitcoin was consolidating around $81,200-$82,250, making a sustained move beyond that range important for assessing momentum.
US producer-price data due on October 15 is the next economic indicator in focus, alongside further signals from the Federal Reserve.
For retail investors, analysts advise caution against reacting to every market swing. Subburaj recommended staggered entries and disciplined position sizing, while Shetty highlighted the importance of monitoring trading volumes and open interest.
Investors should remember that lower prices do not guarantee a recovery, and leverage can magnify losses during sharp market movements.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.