Bitcoin Drops Below $80,000 As PPI Data Hits 4-Year High

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• Bitcoin has dipped below $80,000 as April’s Producer Price Index (PPI) rose 1.4%, the highest it has been since 2022.

• Weak capital inflows and heavy overhead supply indicate bears are still in control, with analysts now watching the Trump-Xi meeting this week.

Bitcoin has dropped below $80,000 after shedding 1.8% in the past day, with a sharp drop in the past six hours as it reacted to new inflation data.

BTC trades at $78,800 at press time, dropping over $2,200 in the past six hours. Its market cap is down 1.9% to $1.58 trillion, while 24-hour trading volume dipped slightly to $31.77 billion.

The drop came after the US Bureau of Labor Statistics revealed that the producer price index (PPI) went up 1.4%, nearly three times higher than the projected 0.5%. It’s the highest monthly increase in over four years. Annualized, PPI is up 6%, its highest increase since December 2022.

High PPI data means that businesses are paying higher prices for materials, which eventually gets passed on to consumers and leads to high CPI. The CPI data was published yesterday and was at its highest since 2023. With consumers paying more for their goods, they are less likely to invest in assets like Bitcoin. The Federal Reserve is also unlikely to make rate cuts, which raises bond yields and reduces appetite for risk assets like Bitcoin.

Amid the macroeconomic turmoil, Bitcoin needs to stay above the $80,000 level, says Matt Mena, the senior researcher at 21Shares. A prolonged stay below this level will bring other lower levels into focus, with $75,000 the next major support.

**Bitcoin Awaits Trump-Xi Meeting as Leverage Surges **

Retail interest in crypto has continued to drop this year. As we reported, on-chain data shows that retail investors have continued to sell off their BTC, with institutional investors’ accumulation balancing the books.

This shift is reflected in the derivatives markets. Data from Alphractal shows that Bitcoin’s open interest has hit 763,350 BTC (over $61 billion), a surge from 707,000 BTC at the start of this month.

Data courtesy of Alphractal

Alphractal’s data shows that leveraged positions on Bitcoin have hit a new high. The downside is that if BTC continues to dip, the potential liquidation would be catastrophic and wipe out millions of positions.

🚨 RECORD LEVERAGE LEVELS IN THE MARKET 🚨

According to the data, leveraged positions on $BTC have reached ATH.

Never before in crypto history have traders used this much borrowed capital.

And as we know the more leverage in the market, the bigger the potential liquidation… pic.twitter.com/q00Kdz6Utm

— CryptoJack (@cryptojack) May 13, 2026

Glassnode adds that “weaker capital inflows and heavy overhead supply near $86K keep conviction below prior bull phases.”

Meanwhile, analysts are closely watching the Trump-XI meeting later this week, which they say could move markets, including crypto. The president has taken industry movers with him, including Elon Musk, Nvidia’s Jensen Huang and Apple’s Tim Cook.

If the talks go well, Trump could lower his tariffs on China, which would spark a risk-on approach from investors, with Bitcoin and other risk-on assets like stocks likely to surge. However, if the two sides fail to find a middle ground on issues like Taiwan and AI chips, the escalation that results would wreck financial markets.