Bitcoin has bounced back above $82,000 on Friday morning, recovering after it briefly fell below $80,000 following hot US inflation data. Bitcoin was trading near $82,300, up about 1% from the previous day, as buyers stepped in at the key $80,000 level that has held as a floor this week.
The quick recovery came as fears of another Federal Reserve rate hike started to ease. US consumer inflation came in at 3.7% and producer prices jumped sharply, which first pushed traders to sell. But Fed officials have sounded cautious about more hikes, and markets now see about a 73% chance that rates stay on hold this month. US Treasury yields fell and the dollar index dropped about 0.45% to near 102, which took some pressure off crypto and other risk assets.
Other big coins joined the bounce. Ethereum rose about 1.5% to near $2,450, Solana gained about 1% to near $105, and XRP held near $1.33. Among the top 100 coins, Starknet was one of the strongest gainers, rising about 13%, while the wider market turned slightly green after two difficult days.
For traders, the picture is still careful, not fully bullish. Bitcoin needs to hold above the $80,400 area that buyers have defended twice, and a daily close back above $82,000 would improve the short-term mood. The next big test is the Federal Reserve meeting on October 27-28, while high oil prices and still-hot inflation remain a risk for another sell-off.
In short, Bitcoin has shown strength by holding $80,000 on bad inflation news and bouncing fast, but traders are likely to stay cautious and trade smaller sizes until the Fed decision is clear.
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Aju Press, CoinDesk, CryptoCompass, CoinMarketCap