Bitcoin slipped below $77,000 in early Thursday trading, registering a roughly 2% loss on the day, according to TradingView data. The decline followed the release of US producer‑price index (PPI) data that showed a 5.4% year‑on‑year increase in August, 0.1 percentage point above analysts' expectations.
The stronger‑than‑expected PPI added to inflation concerns and coincided with a sharp rise in long‑dated US Treasury yields. The 30‑year yield rose to 5.353%, a level not seen since June 2007, while the 10‑year yield climbed to 4.924%, its highest since November 2023. The move occurred despite the Treasury's first stepped‑up debt‑buyback operation of the week, which repurchased $6 billion of Treasurys on Wednesday.
Higher inflation expectations also lifted market odds of a Federal Reserve rate hike at the September 16 meeting. CME Group’s FedWatch tool showed the probability of a 0.25% increase rising to 69.8% from 61.2% the previous day. The European Central Bank announced a 0.25% rate hike of its own, marking its second increase in 2026.
Geopolitical tensions in the Middle East pushed crude oil higher, with West Texas Intermediate breaching $100 per barrel for the first time since May and Brent crude exceeding $105 per barrel, near a 16‑week peak. The surge in oil prices fed into the inflation narrative, reinforcing the bond‑market reaction.
Overall, the combination of unexpected PPI growth, rising long‑term yields, and higher oil prices created a macro‑driven headwind for risk assets, including Bitcoin, which struggled to maintain its recent gains.
