Bitcoin (BTC) price briefly dropped below $80,000 on October 15 after US PPI inflation came in hot at 6.3%. The rising inflation has now triggered hawkish remarks from Fed officials as the odds of one more Fed rate hike in 2026 soar.

Cleveland Fed President Beth Hammack has warned that surging inflation could force the Federal Reserve to take a more aggressive monetary policy action.

While speaking in New York during a Goldman Sachs event, Hammack noted that it might become harder for the Fed to control the persistent price pressures if businesses and consumers expect inflation to remain high.

Hammock’s remarks come after the US PPI inflation rose by 6.3% in September 2026, which increased the odds of the Fed hiking interest rates during the December 2026 Federal Open Market Committee (FOMC) meeting and pushed Bitcoin price below $80K for the first time since September 18.

Chicago Fed President Austan Goolsbee has also noted that this week’s inflation data was “discouraging”, adding that the pressures will only ease if the drivers of inflation, including geopolitical tensions and tariffs, go away.

Data from Santiment shows that Bitcoin’s key stakeholder wallets holding between 10 and 10,000 BTC are rising. These wallets have reached an all-time high of 20,338 following a sharp rise since mid-July.

Per Santiment, this data suggests that large investors remain confident despite the recent surge in volatility, and the accumulation could create a healthy setup for a future upside.

However, while whales are buying, futures and retail traders are selling. The Binance funding rate signal on CryptoQuant has turned negative suggesting that traders are positioned short as they bet on a bearish future Bitcoin outlook .

CoinGlass data shows that Bitcoin exchange reserves have increased from 2.43 million on October 8 to 2.45 million on October 16, suggesting that some traders are moving their coins to exchanges for selling.

Bitcoin price has surged with an intraday gain of 2.8% at press time, marking a notable recovery from the drop below $80,000 on October 15.

However, the swift recovery left uncollected liquidity at $79,800. BTC value might be pulled lower to collect liquidity at this low before a strong recovery occurs.

The RSI reading of 47 supports this bearish Bitcoin outlook and suggests that, despite the move to $82,000, the momentum remains weak.

On the upside, Bitcoin price faces resistance at the midline of an FVG gap at $82,580. Closing above this midline could confirm a strong move to the upside and may kickstart the next bullish leg to the PoC line at $83,885.

2. Will the Fed hike interest rates after high US inflation?

3. How low could Bitcoin price go if it loses support at $80,000?

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