Bitcoin (BTC) Slides to $77K Amid Inflation Surge, $100 Oil, and ETF Exodus — What Lies Ahead?

Key Highlights

• Bitcoin slid to $77,189 following stronger-than-anticipated US PPI figures of 5.4%, pushing Federal Reserve rate hike probabilities to approximately 72%
• WTI crude oil breached the $100 per barrel mark for the first time since May 21, intensifying inflationary pressures
• Treasury 30-year bond yields climbed to 5.353%, reaching levels unseen since June 2007
• Spot Bitcoin ETFs experienced $283 million in net withdrawals, extending the outflow streak to three consecutive sessions
• Brian Armstrong, CEO of Coinbase, expressed his belief that Bitcoin has reached its cyclical bottom within the current four-year pattern

Bitcoin tumbled beneath the $77,000 threshold on Thursday as a perfect storm of elevated inflation figures, climbing oil costs, and escalating bond yields sent risk-sensitive assets into retreat.

Bitcoin (BTC) Price

The leading digital currency by market capitalization declined 1.76% to settle at $77,189, immediately following the Bureau of Labor Statistics’ release of the August Producer Price Index (PPI) figures.

The headline PPI registered at 5.4% on an annual basis, marginally exceeding the 5.3% market consensus. Compounding market anxiety, July’s numbers underwent upward revisions, intensifying pressure on investors already bracing for Friday’s Consumer Price Index (CPI) announcement.

Market expectations for a Federal Reserve rate increase spiked following the inflation report. Data from the CME FedWatch Tool indicates the likelihood of a 0.25% rate increase at the September 16 FOMC gathering surged to nearly 72%, climbing from approximately 64% prior to the PPI announcement.

Energy markets contributed additional stress to the equation. WTI crude surpassed $100 per barrel for the first time since late May, fueled by escalating military tensions between the United States and Iran concerning the Strait of Hormuz. Brent crude similarly climbed, exceeding $105 per barrel.

Treasury Yields Climb to Generational Heights

US Treasury yields experienced substantial upward movement throughout the session. The 30-year maturity yield touched 5.353%, marking its highest reading since June 2007. The benchmark 10-year yield reached 4.968%, a level last witnessed in November 2023.

These movements occurred even as the US Treasury implemented a $6 billion debt repurchase program. Financial analysis platform The Kobeissi Letter noted on X: “The bond market is quite literally fighting the US Treasury.”

In Europe, the European Central Bank implemented a 0.25% rate increase on Thursday, representing its second hike during 2026.

Weakening ETF Flows and Spot Market Demand

Cryptocurrency market analyst Ted Pillows issued a warning on X that spot Bitcoin demand has contracted to levels comparable to when BTC traded at $69,000, stating: “Either spot buyers need to do the lifting, or the price will inevitably drop to $70,000.” His observations underscore mounting concerns among market participants monitoring demand indicators.

According to Wu Blockchain reporting on X, Bitcoin spot ETFs registered $283 million in net withdrawals on September 10. This represented the third consecutive trading day of negative flows from Bitcoin exchange-traded products.

Blockchain analytics further revealed Bitcoin sell-side risk declining to unusually low thresholds, with sellers at the $80,000 price level virtually disappearing from the market.

During an interview with Bloomberg Television from Singapore, Coinbase CEO Brian Armstrong shared his personal conviction that Bitcoin has established the floor of its present four-year market cycle. Armstrong noted that cryptocurrency regulatory frameworks are showing signs of improvement, characterizing the Clarity Act as “right on the finish line” for Senate passage.

The post Bitcoin (BTC) Slides to $77K Amid Inflation Surge, $100 Oil, and ETF Exodus — What Lies Ahead? appeared first on Blockonomi.