Bitcoin Skidded Past $80K-Trump’s Iran Threat & Inflation Shake Market!

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<a href="https://jpygbp.com/btc-usd/">Bitcoin</a> Slips Below $80K After US Inflation Hits 3.8% and Rate Cut Hopes Fade

As a crypto investor, I noticed Bitcoin had a quick dip below $80,000 yesterday. It seems like the market reacted to a couple of things: Donald Trump mentioning a potential ceasefire in Iran, and the newest numbers on U.S. inflation. It was a brief move, but definitely something I kept an eye on.

  • Key Takeaways:

  • Bitcoin fell below $80,000 on May 12 as Trump warned that the U.S.-Iran ceasefire is on life support.
  • A 1.6% drop in crypto prices wiped out $232 million in long bets as bitcoin’s market cap fell to $1.61 trillion.
  • Markets await the PPI report to see if 3.8% inflation will force further energy price pressure.

Stalled Negotiations and Regional Stability

Bitcoin briefly dipped below $80,000 on May 12 as global markets reacted to President Donald Trump’s warning that the ceasefire between the U.S. and Iran was “on life support.” After testing the $82,000 mark Monday afternoon, the top cryptocurrency showed signs of weakness, plummeting to $80,900.

Although bitcoin quickly rebounded to trade above $81,000 in the early hours of Tuesday, it could not hold the level and slipped below the threshold again around 4 a.m. EDT. From that point, the cryptocurrency began a gradual decline that erased nearly all gains made in the preceding 48 hours. By 12:54 p.m. EDT, bitcoin had dipped to an intraday low of $79,820 before recovering quickly to $80,500.

Consequently, the 1.6% drop over 24 hours dragged the cryptocurrency’s market capitalization down to $1.61 trillion.

President Trump rejected Iran’s recent proposal as unsatisfactory, telling reporters that it appeared Iran wasn’t serious about reaching a deal and was simply delaying tactics. This lack of progress in talks is likely to embolden those in Washington who support military action.

If fighting resumes, the crucial Strait of Hormuz – which has seen shipping drastically reduced since the conflict started – will likely stay closed. According to the CEO of Aramco, this would mean oil markets and prices won’t settle down until at least 2027. This poses a problem for the Trump administration and the Republican Party, as rising oil prices throughout the rest of the year could hurt their prospects in the upcoming November elections.

Rising geopolitical tensions in the Middle East were not the only factor weighing on markets. The release of the U.S. April consumer price index (CPI) data, which showed inflation rising to 3.8% versus the projected 3.7%, dampened hopes of a rate cut. As expected, energy prices—particularly gasoline—were the main culprits. The producer price index (PPI) report, set for release on May 13, is the next major catalyst to watch, as it will signal whether these price pressures are continuing to build at the manufacturing level.

Meanwhile, bitcoin’s price action over 24 hours saw $57 million in long bets liquidated versus $7.5 million in shorts. Overall, the cryptocurrency market saw nearly $280 million in leveraged positions liquidated, with long bets accounting for approximately $232 million.

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2026-05-12 22:57