September producer prices came in far above forecast on every measure. The Bureau of Labor Statistics reported final demand up 1.3% on the month against a 0.5% consensus, and up 6.3% over twelve months against 5.3% expected, released Thursday at 8:30 a.m. Eastern. August's twelve-month figure was 5.4%, so this is a one-month jump of nearly a full percentage point in the annual rate. Energy did most of it, with final demand goods up 2.6% on a 10.8% rise in energy, but the increase was not confined there: services rose 0.8%, trade services margins rose 1.4%, transportation and warehousing rose 3.4%, and the core measure excluding foods, energy and trade services rose 0.5% on the month and 5.0% over twelve months, also above consensus near 4.4%. The number that matters for anyone pricing bitcoin is the gap. Consumer prices ran 3.7% annually on Wednesday's print while producer prices ran 6.3%, which says the cost pressure sitting in the pipeline is roughly double what has reached the shelf. That is the argument against treating the CPI figure as a passing energy spike. Bitcoin had already fallen to just above $80,000 around 02:30 UTC before recovering to about $81,200, with nearly $1 billion in futures liquidated over 24 hours, $200 million of it ether longs against $115 million bitcoin. October hike odds had spiked to nearly 47% on the CPI print from about 22%, then eased back toward 26% to 29% on CME FedWatch. We have not yet seen settled reporting on where those odds went after the PPI release, so we are not putting a number on it.