Crypto Market Plunges Amid Inflation Fears and Soaring Oil Prices

The global crypto market has taken a hit today, with the total market cap dropping to $2.72 trillion, down 1.6% in 24 hours according to CoinGecko.

Traders woke up to find their portfolios down, with a broad-based dip across nearly every coin suggesting that something bigger than one bad headline is driving the mood.

The Producer Price Index (PPI) report released by the Bureau of Labor Statistics showed final demand prices rose 0.4% in August, while goods prices jumped 1.1%. This hotter inflation data typically means interest rates stay higher for longer, squeezing Bitcoin and other coins that thrive when borrowing money is cheap.

Oil prices have also risen above $103 a barrel for the first time since May 20, up 20% this month alone and 54% since the July 2 low. This rise in oil costs feeds straight back into inflation expectations, spooking traders already nervous about the PPI print.