Bitcoin Falls Below $77,000 Amid Stronger-Than-Expected US PPI

The value of Bitcoin fell below $77,000 on Thursday as risk assets faced renewed macro headwinds.

A stronger-than-expected US Producer Price Index (PPI) reading came in at 5.4% year-over-year, surpassing the expected 5.3% and causing a downturn for crypto.

The PPI data also led to increased expectations of interest-rate hikes from the Federal Reserve, with CME Group's FedWatch Tool showing a 69.8% chance of a 0.25% hike at the September 16 meeting.

The US 30-year bond yield hit its highest level since June 2007, reaching 5.353%, while the 10-year yield rose to its highest levels since November 2023 at 4.924%. The ongoing escalation in the Middle East and increasing inflation due to higher oil prices also contributed to market volatility.