Bitcoin Slumps Below $77,000 as Inflation Fears and Fed Rate Hike Loom

Bitcoin's four-day losing streak continued on September 11, 2026, as the cryptocurrency fell below $77,000. The decline follows hotter-than-expected U.S. inflation data and rising crude oil prices, which have boosted expectations for a Federal Reserve rate hike.

The Producer Price Index for August rose 5.4% year-over-year, surpassing estimates and sending market expectations for a Fed rate increase soaring to over 70%. Higher interest rates typically reduce the appeal of speculative assets like cryptocurrencies, as they increase the return available on safer investments like government bonds.

Energy and debt markets are further amplifying these pressures. Crude oil prices have climbed above $100 per barrel, raising concerns about persistent, elevated inflation that could keep central bank policy tighter for longer. The U.S. 10-year Treasury yield is nearing the 5% threshold, creating stiff competition for capital.

The shift in institutional demand has also weakened Bitcoin's position. After recording consistent inflows into U.S. spot Bitcoin ETFs, recent days have seen a move toward net outflows. This reduction in institutional buying power has removed a critical cushion for the asset, leaving it more vulnerable to broader market sentiment.