Bitcoin Tumbles Below $77,000 as Rate Hike Expectations Rise
The price of Bitcoin has dropped below $77,000 due to higher-than-expected producer inflation and strengthening market pricing for a Federal Reserve interest rate hike. The August producer prices rose by 5.4%, exceeding the expected 5.1% increase.
This shift in investor outlook ahead of next week's Federal Reserve meeting has led to a nearly 2% decline in Bitcoin value over 24 hours, pushing it below $77,000. Rising bond yields have further exacerbated the sell-off in crypto assets.
The CoinDesk 20 index fell by approximately 3%, with 95 assets out of the CoinDesk 100 ending the day with losses. The 30-year U.S. Treasury bond yield has climbed to its highest level in 19 years, while the 10-year yield approached 5% and the two-year yield rose above 4.5%.