Oil Shock Sends Bitcoin Plummeting Below $77,000
Bitcoin plummeted below $77,000 on September 10 as oil surged above $100 and global bond yields rose.
The energy shock pushed traders toward a potential quarter-point Federal Reserve increase next week, with rate markets pricing in about a 76% chance of such an event.
The latest inflation data captured little of the recent advance in oil prices, leaving traders to price an energy shock before it fully appears in official numbers.
Joseph Brusuelas, principal and chief economist at RSM US LLP, noted that the PPI sampling period ended on August 11, before the latest surge in crude, gasoline, and diesel prices.
The European Central Bank raised its deposit rate by 25 basis points to 2.5% on September 10, following the energy shock's impact on euro-area inflation.