Bitcoin Price Slips Below $80,000 Amid U.S. Selloff and Rising Inflation Concerns

Understanding the Price Drop Below Eighty Thousand

Bitcoin fell below the $80,000 mark on May 13, 2026. According to price records from CoinGlass and StatMuse, the digital asset dropped to a low of $78,909.68 during the day. It later recovered to close at $81,051.25. Late-day trading settled near $79,396, showing that buyers and sellers were actively debating the right value for the coin.

This dip marked the first time the price went under $80,000 in about a week. The price had previously climbed above that key level on May 4, 2026. When prices drop quickly, it is easy to look for a single reason. However, markets are made of millions of individual decisions to buy or sell, which often cluster together.

Two main topics dominated conversation among traders during this downswing. First, the U.S. government released new inflation data that surprised many economists. Second, trading platforms showed automated liquidations of leveraged bets. Together, these events created a fast-moving environment where prices slid quickly before finding a temporary floor. Both factors played a role in the sudden shift.

How Inflation and Trading Rules Met

The U.S. Bureau of Labor Statistics released the April 2026 Producer Price Index on May 13. This report showed a 1.4% increase for the month, bringing the yearly rate to 6.0%. This was the fastest monthly rise since March 2022. Many people worried this jump would make the Federal Reserve keep interest rates high for longer.

High interest rates can make traditional bonds more attractive than riskier assets. Some traders believe this inflation news directly caused the Bitcoin selloff. However, linking one news event directly to a price change is often too simple. While the news did make people cautious, other factors inside the trading market were also at work.

CoinGlass data showed that many traders had open positions with borrowed money. When the price started to dip, these leveraged long positions faced automatic liquidations. This forced selling created a domino effect that pushed the price down further. A build-up of short positions also added downward pressure during those hours.

The Facts Behind Jane Street Holdings

Some news stories pointed to institutional selling, but the timing of these claims was off. A regulatory filing called Form 13F was submitted to the Securities and Exchange Commission on May 12, 2026. This document showed what Jane Street owned on March 31, 2026. It did not show real-time trading during the May 13 price drop.

The SEC filing showed that Jane Street cut its holdings in the BlackRock iShares Bitcoin Trust by 71% to 5.9 million shares. It also reduced its holdings in the Fidelity Wise Origin Bitcoin Fund by 60% to 2 million shares. At the same time, the firm added about $82 million to Ethereum-based funds during that first quarter.

These numbers look like a big retreat, but they do not tell the whole story. Jane Street is a major market maker that uses complex hedging strategies. Form 13F only shows long stock positions and leaves out short positions or private trades. Therefore, these changes likely reflect balanced risk management rather than a simple bet against Bitcoin.

Long Term Holders Keep Their Positions

While short-term traders reacted to the news, long-term holders showed a different pattern. BitGo data published by Bitfinex showed that long-term conviction buyers held nearly 4 million Bitcoins. This amount was three times larger than what they held at the end of 2025, showing steady accumulation over several months.

About 70% of these long-term holders remained in profit despite the sudden price drop. Because these buyers did not rush to sell, they created a supportive floor for the market. This steady holding behavior contrasts with the fast-paced trading seen on exchanges, where short-term price swings tend to dominate the daily news.

On the institutional side, Arkham Intelligence data showed that BlackRock moved 861 Bitcoin to Coinbase Prime on May 13. Some traders viewed this transfer as immediate selling pressure. However, moving coins to an exchange does not always mean they were sold right away, as large institutions manage their custody setups for many reasons.

• BitGo data showed long-term holdings reached nearly 4 million coins.
• About 70% of those long-term holders remained in profit.
• BlackRock moved 861 coins to Coinbase Prime during the day.
• Some technology firms like HIVE shifted focus to AI computing.

Bitcoin Price Slips Below Eighty Thousand Dollars

The price drop below $80,000 on May 13, 2026, resulted from a mix of market forces. While the high U.S. producer price inflation report made investors cautious, technical liquidations on exchanges accelerated the slide. No single event was solely responsible for the movement, as different groups of traders acted on different signals.

Older regulatory filings from Jane Street also entered the conversation, though they reflected decisions made months earlier. Understanding that market makers use delta-neutral strategies helps clarify that these filings do not represent simple panic selling. Instead, they show how large financial institutions balance their risks across different digital assets over time.

At the same time, long-term holders maintained their positions with high conviction, and some mining firms explored new business models like artificial intelligence. This mix of short-term caution and long-term holding shows the complexity of the market. The day's events highlight how macroeconomic news and internal trading rules shape daily prices.