Bitcoin Tumbles Amid Inflation Fears and Higher Interest Rates

Bitcoin's price fell to $77,189.8 on Thursday as concerns about inflation and interest rates rose.

The world's largest cryptocurrency dropped 1.2% following a report from the Bureau of Labor Statistics showing that U.S. producer prices ticked up 0.4% month-over-month in August, beating consensus estimates.

Headline PPI also increased 5.4% year-over-year, while core PPI rose 4.6% Y/Y.

The data boosted expectations of a Federal Reserve rate hike, with the probability of a quarter-point increase now standing at 73%, up from about 64% before the report.

Higher rates tend to weigh on speculative assets like cryptocurrencies.