Bitcoin Tumbles Ahead of US Inflation Data and ECB Rate Decision

Bitcoin's price dipped by 0.2% to $78,162 as markets await crucial inflation data from the United States and a key interest rate decision from the European Central Bank.

The U.S. producer price index data is due at 1230 GMT on Thursday, which could provide insight into the prospects of the Federal Reserve raising interest rates next week. Investors are pricing in a 59% probability of a Fed rate increase, according to LSEG data.

The European Central Bank's (ECB) rate decision is also highly anticipated, with investors expecting a 99% possibility of an ECB interest rate hike on Thursday at 1215 GMT. This could have significant implications for global markets and the Bitcoin price.