Bitcoin Tumbles Amid Inflation Surge, $100 Oil, and ETF Exodus
Bitcoin plummeted to $77,189 on Thursday after the US Bureau of Labor Statistics revealed that producer price inflation (PPI) had surged to 5.4% in August, exceeding market expectations.
This news compounded existing concerns about rising energy costs and increasing bond yields, leading to a perfect storm of factors driving down risk-sensitive assets like Bitcoin.
WTI crude oil prices broke through the $100 per barrel mark for the first time since May 21, while Treasury yields reached generational heights with the 30-year maturity yield touching 5.353%, its highest reading since June 2007.
Coinbase CEO Brian Armstrong expressed his confidence that Bitcoin has hit the bottom of its current four-year market cycle, citing improving regulatory frameworks as a positive sign.