Crypto Markets Plunge as Oil Prices Soar and Bond Yields Remain Elevated

Crypto markets are experiencing a decline due to rising energy costs and high bond yields. Oil prices have climbed above $100, which is fueling fears that inflation could persist.

This has led to a risk-off sentiment in the market, with investors aggressively de-risking their positions. Bitcoin ETF outflows have reached $166.8 million over the last two sessions, a sharp reversal from the $730.8 million in inflows recorded on September 3.

The price of Bitcoin (BTC) has dropped to $78,094, marking a 1.99% decline over the last 24 hours. Other major altcoins such as Ethereum (ETH), BNB, XRP, Solana (SOL), and Hyperliquid (HYPE) have also seen significant losses.

The market is now focused on Thursday's U.S. Producer Price Index (PPI) and Friday's Consumer Price Index (CPI) data, which will set the stage for next week's Federal Reserve meeting.