Bitcoin Slumps Below $77K Amid Fed Hike Odds Surge

Bitcoin's price slipped below $77,000 on Thursday as investors increased their expectations of another Federal Reserve interest-rate hike. The cryptocurrency fell to an intraday low of roughly $76,748.

The surge in Fed hike odds was triggered by hot inflation data from the U.S. Producer Price Index, which showed a 5.4% year-over-year increase in August, slightly above the 5.3% consensus estimate.

Following the release, traders increased bets that the Federal Reserve would raise interest rates by at least 25 basis points at its Sept. 16 meeting, with the CME FedWatch tool showing the probability of a hike climbing to roughly 70%.

The inflation concerns were further exacerbated by surging oil prices, with Brent crude reaching above $100 per barrel and U.S. crude also moving above the $100 mark.