Inflation Fears and Rate Hike Odds Send Bitcoin Price Plummeting

Bitcoin's price plummeted to near $77,124.70 on Thursday due to hot inflation data and rising Federal Reserve rate hike odds.

The Producer Price Index (PPI) for final demand rose 0.4% in August, matching forecasts, while yearly PPI inflation jumped to 5.4% from 4.8% in July.

This inflationary pressure is causing the Fed to consider a rate hike, which would increase borrowing costs and potentially pull more money away from crypto and into safer assets like bonds.

The chart shows a rounding-top pattern forming, with price now testing the lower edge of a rising channel near $76,000 to $76,500. A confirmed 4-hour close below $76,000 would signal a channel breakdown and a downside target near $70,000.