Bitcoin Tumbles Below $77K as Rate Hike Odds Hit 70%

Bitcoin's price slipped below $77,000 on Thursday as investors increased their expectations of another Federal Reserve interest-rate hike.

The latest U.S. Producer Price Index showed wholesale inflation remaining hotter than economists had hoped, with a 5.4% year-over-year increase in August, slightly above the 5.3% consensus estimate.

Fed hike odds surged to roughly 70%, as measured by the CME FedWatch tool, following the PPI report, compared to around 64% beforehand.

The Treasury yields are also adding pressure on Bitcoin, with the benchmark 10-year U.S. Treasury yield climbing to approximately 4.92%, reaching its highest level since 2023.