Bitcoin Trades Sideways Ahead of Inflation Reports

Bitcoin dipped below $78,000 on Tuesday, reaching a low of $77,603 before rebounding to around $78,600.

This price drop triggered $264 million in total crypto liquidations, including $79 million in Bitcoin positions, mostly long bets.

The market is now cautious ahead of upcoming US inflation reports, with analysts expecting Bitcoin to trade sideways as investors await the August Producer Price Index (PPI) and Consumer Price Index (CPI) data.

High inflation could prompt the Federal Reserve to hike interest rates, which would make traditional assets more attractive and potentially pressure Bitcoin and other cryptocurrencies further.