Bitcoin Falls Below $77K as Strong Inflation Data Fuels Rate Hike Speculation

Bitcoin's price fell below $77,000 as investors reacted to stronger-than-expected U.S. Producer Price Index figures. The PPI rose 5.4% year-over-year, exceeding analysts' forecasts and increasing expectations of a Federal Reserve rate hike.

The FedWatch tool indicated that market participants assigned a 74% probability to an interest rate increase at the September 15-16 policy gathering. Bitcoin's price dropped approximately 2% over a 24-hour period, with spot exchange-traded funds in the U.S. witnessing $120 million in net withdrawals on Wednesday.

Zcash declined by 12%, while XRP and Solana fell around 4% and 3%, respectively. Tron was an exception among major cryptocurrencies, maintaining stability despite broader market weakness.