Bitcoin Tops $80K Before Pullback as Markets Brace for Key US Inflation Data
Bitcoin briefly broke above $80,000 for the first time since May before easing back, as US traders shift focus to Wednesday's PCE inflation report and Fed Chair Kevin Warsh's first Jackson Hole appearance.
Bitcoin Breaks $80,000, Then Gives Back Gains
Bitcoin pushed above $80,000 for the first time since mid-May on August 25, part of a broader wave of optimism sweeping a crypto market that had spent months in a slump. The world's largest cryptocurrency spiked roughly 3% intraday to touch $81,257 before profit-taking set in, pulling it back down to trade around $78,800–$79,100. Even with the pullback, bitcoin remains far below its October peak near $126,000.
The rally and reversal were amplified by heavy leverage in the market. Total crypto liquidations over the trailing 24 hours reached close to $566 million, with roughly $331 million of that coming from short positions being forced to cover — a dynamic that helped fuel the initial breakout above $80,000 before sellers regained control.
The broader market cooled alongside bitcoin. Total crypto market capitalization slipped about 1.6% to roughly $2.75 trillion, with 24-hour trading volume near $92.6 billion. Other major tokens saw sharper one-day pullbacks than bitcoin: XRP fell 5%, to about $1.44; Solana dropped 4.8%, to roughly $96.94; and BNB slid 2.9%, to around $696. Despite the daily dip, the week-over-week picture is still strongly positive — bitcoin is up about 22.6% over seven days, ether has gained 28.6%, XRP has climbed 43.7%, Solana is up 25.6%, and BNB has advanced 15.4%. Sentiment has cooled slightly but remains constructive, with the Fear & Greed Index reading 65, down from 74 a day earlier.
Markets Turn to PCE Inflation Data and Jackson Hole
With the rally digesting, attention on August 26 is shifting to a heavier macroeconomic calendar. The Bureau of Economic Analysis is due to release its second estimate of second-quarter GDP alongside July's personal income and outlays report, which includes the PCE price index — the Federal Reserve's preferred inflation gauge. A hotter-than-expected inflation print could reinforce a more cautious rate path, while a softer reading could bolster hopes for continued easing; either way, traders are treating the release as a potential volatility catalyst for crypto prices.
Just as significant is this week's Jackson Hole Economic Policy Symposium, running August 27–29. Markets are watching for the first Jackson Hole appearance by Federal Reserve Chair Kevin Warsh, with his keynote address expected on Friday. Comments on the rate outlook there could set the tone for risk assets, including crypto, heading into the fall.
Adding to the mix, several tokens face notable supply unlocks in the coming days — including HYPE (roughly $723 million worth) and HUMA (about $9.5 million) — events that can add short-term selling pressure regardless of the macro backdrop.
The Takeaway
Bitcoin's move above $80,000 shows real risk appetite has returned to crypto after a rough stretch, but the sharp reversal underlines how sensitive the market still is to leverage and profit-taking. With US inflation data and a high-profile Fed speech both landing this week, traders should expect volatility to stay elevated as the market looks for its next directional cue.
