Bitcoin Slumps Below $77K on Rising Rate Hike Odds and Strong US Inflation

Bitcoin's price fell below $77,000 on September 10 as strong US inflation data raised the likelihood of a Federal Reserve interest rate hike. The Producer Price Index rose 5.4% year-over-year, increasing the odds of a rate hike to around 70-74% for the upcoming September 16 meeting.

Rising oil prices and higher Treasury yields also pressured Bitcoin, while traditional stock markets declined and outflows from Bitcoin ETFs added to the selling pressure.

Coinbase CEO Brian Armstrong stated that Bitcoin's price has likely found its bottom despite recent declines, and he expects a gradual upward trend over the next one to two years as the market approaches the next halving event.