Can Bitcoin Price Hold Above $80,000 This Week?

Bitcoin has recovered to around $82,500 after briefly falling below $80,000 last week. The rebound faces a major test on Wednesday when fresh US oil inventory data could revive the inflation fears that triggered the selloff.

The cryptocurrency fell to $79,770 on Thursday as investors reacted to another troubling US inflation report. September consumer prices rose 3.7% annually, exceeding the expected 3.6%. Stronger producer-price and retail-sales figures added to concerns that the Federal Reserve could raise interest rates again, with pressure spreading across financial markets.

Inflation Concerns

While CPI inflation up to 3.7%, inflation is much higher in many crucial categories. Fuel oil inflation reached +74.2%, gasoline +34.2%, airline fares +22.4%, car repair +5.8%, and hospital services +5.6%. Technology stocks suffered heavy losses, while investors reduced exposure to riskier assets, including cryptocurrencies.

By Monday, conditions had improved as oil prices and US Treasury yields declined, easing some inflation concerns. Traders also reduced expectations of an immediate Fed rate hike, with markets now pricing in roughly an 87% probability that rates will remain unchanged on October 28.

ETF Outflows

The recovery has a weakness: US spot Bitcoin ETFs recorded approximately $228 million in net outflows last week. Institutional demand has yet to show a convincing turnaround, with the outflows indicating that some investors remain cautious despite the price rebound.

Oil Price Impact

According to Bitunix analysts, Wednesday's US Energy Information Administration crude oil inventory release is a major upcoming catalyst. A larger-than-expected decline in oil inventories could push energy prices higher, strengthening inflation fears and increasing pressure on Bitcoin.

Conversely, an unexpected inventory increase could weigh on oil prices and ease concerns about further monetary tightening. For Bitcoin, $80,000 remains the immediate support level. A sustained break below it could trigger another test of last week's lows.

Altcoin Performance

The weakness extends beyond Bitcoin. Only 40% of the 300 cryptocurrencies tracked by Bitunix gained last week, with a median return of −2.03%. Yet some smaller tokens moved sharply higher.

Basic Attention Token (BAT) surged 99.43%, supported by interest in its expanding Brave browser ecosystem, which reported 128 million monthly users and more than 200,000 Brave Rewards Card registrations. Meanwhile, Ethereum scaling tokens ZK and STRK gained more than 40% each, reflecting selective interest in zero-knowledge technology.

Upcoming Economic Events

Bitcoin's recovery has given buyers room to defend $80,000. Whether that support survives the week will depend on how inflation expectations develop and whether stronger demand returns. Key events include the US crude oil inventory report on October 21, US business activity data and consumer sentiment figures on October 23, the Federal Reserve policy meeting on October 27-28, and US third-quarter GDP and September PCE inflation on October 29.