Bitcoin dips below $80K as US inflation rises and Iran ceasefire talks stall

Bitcoin briefly fell below $80,000 on May 12 amid rising US inflation at 3.8% and geopolitical tensions after President Trump warned that the US-Iran ceasefire is fragile. The drop erased recent gains and reduced bitcoin's market cap to $1.61 trillion, with $232 million in long crypto bets liquidated. The stalled Iran negotiations raise concerns over Middle East stability and energy prices, while markets await the US Producer Price Index report to gauge ongoing inflation pressures. These factors combined have dampened hopes for a US interest rate cut soon, impacting crypto and broader markets.