Bitcoin Slumps on Higher US Inflation and Rising Fed Hike Odds

Bitcoin's price dropped to around $76,000 after hovering around $80,000. The decline is largely attributed to the rising odds of a Federal Reserve rate hike following higher-than-expected US inflation.

The Labor Department reported that the core consumer price index (CPI) for August rose 0.3% from the previous month, exceeding market expectations of a 0.2% increase. As a result, the likelihood of a Fed rate hike has increased sharply, with the federal funds futures market pricing in a probability of 86.5%, up 14.1 percentage points from the previous session.

Other major altcoins are also experiencing a downturn, with Solana falling 2.14% to $99.59, XRP down 1.77% to $1.34, and BNB dropping 1.49% to $716.28.