Bitcoin Falls as US PPI Rises and Rate Hike Odds Increase
Bitcoin dropped below $77,000 after the U.S. Producer Price Index (PPI) rose to 5.4% year-over-year in August, reinforcing expectations of a Federal Reserve rate hike at its September meeting. The PPI data increased market-implied odds for a 25-basis-point increase from around 62% before the report to nearly 70%. Rising Treasury yields also contributed to Bitcoin's decline as investors shifted toward safer assets amid tightening monetary policy. The bond market selloff intensified, with the 10-year Treasury yield climbing above 4.9%, nearing a critical psychological level of 5%, while the 30-year yield hit its highest since 2007 at over 5.3%. Despite larger-than-usual buybacks by U.S. Secretary Scott Bessent aimed at stabilizing long-term debt, yields continued to rise due to inflationary pressures and higher oil prices. Bitcoin's performance remains sensitive to macroeconomic conditions as it struggles near the $80,000 level amid expectations of tighter financial policies.
Topics: Bitcoin Federal Reserve interest rates PPI inflation Treasury yields