Bitcoin Slumps as US Inflation Surges and Oil Prices Soar

Bitcoin prices dipped below $77,000 on Thursday as risk assets struggled to cope with resurgent macro headwinds.

The decline came after higher-than-expected US PPI inflation data showed a 5.4% year-over-year increase in August, exceeding market expectations of 5.3%. This marked the highest rate since 2008.

Meanwhile, oil prices surged to their highest levels since May, with WTI crude passing $100 per barrel for the first time this year, while Brent crude neared a new 16-week high at over $105 per barrel.

The US 30-year bond yield reached its highest level since June 2007, despite the Treasury's efforts to calm markets by repurchasing $6 billion worth of Treasurys on Wednesday. The yield now stands at 5.353%, while the 10-year yield hit its highest levels since November 2023 at 4.924%.

The surge in bond yields and inflation data fueled concerns about Fed policy tightening, with market expectations of a 0.25% hike at the September 16 meeting jumping to 69.8% from 61.2% the previous day.