Bitcoin Price Drops Below $77K Amid Stronger-Than-Expected Inflation Data

Bitcoin's price plummeted to $77,189 after the US Producer Price Index (PPI) inflation rate came in higher than expected at 5.4%. This unexpected increase put pressure on risk assets and pushed the probability of a Federal Reserve rate hike to 72%.

The rise in oil prices above $100 per barrel and climbing US Treasury yields added to the downward pressure on Bitcoin's price. Additionally, spot Bitcoin ETFs saw outflows for the third day straight, totaling $283 million, indicating weakening demand.

However, not all experts are bearish on Bitcoin. Coinbase CEO Brian Armstrong believes that the cryptocurrency has hit its cyclical bottom due to improving regulatory clarity.