Bitcoin Tumbles Below $77K as Inflation Surge and Oil Prices Soar
Bitcoin's price plummeted to $77,189 on Thursday in response to a perfect storm of elevated inflation figures, climbing oil costs, and escalating bond yields. The US Producer Price Index (PPI) rose 5.4% annually, exceeding market consensus, while July's numbers were revised upward.
The PPI reading pushed Federal Reserve rate hike probabilities to approximately 72%, with the CME FedWatch Tool indicating a 0.25% rate increase at the September 16 FOMC gathering is now nearly certain.
WTI crude oil broke above $100 per barrel, its highest level since May 21, while Brent crude surpassed $105 per barrel. US Treasury yields also surged, with the 30-year maturity yield reaching 5.353%, a level not seen since June 2007.
Bond market observers noted that the current interest rate environment is unusual, with The Kobeissi Letter commenting that 'the bond market is quite literally fighting the US Treasury.'