Crypto prices fell sharply on May 13 after the latest US inflation data added fresh pressure to risk assets. The US Bureau of Labor Statistics reported that April producer price index rose 6.0% year over year, a hotter-than-expected reading that fed macro concerns and triggered quick selling across the digital asset market.
Bitcoin briefly breaks below $80,000
Market pricing showed Bitcoin (BTC) dropping rapidly from around $81,000 and briefly slipping under the $80,000 level during the session. The move was abrupt. A price zone that had held earlier gave way soon after the data release, showing how sensitive short-term positioning had become.
Ether (ETH) also moved lower and lost the $2,300 mark. As the two largest cryptocurrencies weakened, the broader altcoin segment followed, reflecting a clear pullback in market risk appetite.
Two straight days of inflation data weigh on sentiment
The sell-off did not come from one report alone. The source article said US inflation figures had come in above expectations for two consecutive days. CPI had already raised tension in the market, and the PPI release added another blow. Fears tied to stagflation spread across financial markets, and crypto prices were hit in the process.
According to market commentary cited in the report, the combination of the previous day’s CPI and the latest PPI data has sharply reduced expectations that the Federal Reserve could begin cutting rates this summer. With higher rates expected to last longer, capital is pulling back from crypto. A market maker had also warned earlier that the $82,000 area contained significant short-squeeze froth, which could leave prices more vulnerable to amplified swings in a leveraged market.
Price action showed that macro data remains the main driver for short-term trading. After Bitcoin lost $80,000 and Ether fell below $2,300, attention shifted back to inflation and the interest-rate path, while the risk tied to leveraged positions moved higher.