Bitcoin Slips Below $77,000 as Inflation Concerns Weigh on Market
The US Federal Reserve's hawkish stance on inflation has weighed heavily on Bitcoin's price, causing it to dip below $77,000. The Producer Price Index (PPI) released last Thursday showed a rise in inflation concerns, with a Year-on-Year increase of 5.4% in August. This data points to a higher likelihood that the Fed will raise interest rates at its September meeting.
The PPI data triggered a loss of over 2% in Bitcoin's price on Thursday, and the crypto market as a whole saw $446 million in liquidations, with $353 million coming from long positions. The Fear and Greed Index also shows moderating bullish pressure, sitting at 67 on Friday.
However, not all assets are feeling the pinch of inflation concerns. Raydium (RAY) and Falcon (FF) have continued to rally, with RAY up 9% on Friday and FF holding steady above $0.1600. The DeFi tokens show strong bullish momentum, with RAY's Relative Strength Index (RSI) deep in overbought territory.