Bitcoin dropped below $77,000 during Thursday's trading session, tracking a decline in US equities. The asset faced pressure as macro headwinds intensified, driven by rising inflation and a surge in oil prices.
WTI crude oil prices exceeded $100 per barrel for the first time since May 21, while Brent crude neared a 16-week high. These energy costs contributed to an August Producer Price Index of 5.4 percent year-on-year, exceeding market expectations by 0.1 percent.
US Treasury bond yields reached multi-year highs, with the 30-year yield hitting 5.353 percent, a level not seen since June 2007. The 10-year yield climbed to 4.924 percent, its highest point since November 2023, despite a $6 billion debt buyback by the Treasury.
Market expectations for a Federal Reserve interest-rate hike have shifted following the inflation data. According to the CME Group FedWatch Tool, the probability of a 0.25 percent rate increase at the September 16 meeting rose to 69.8 percent from 61.2 percent the previous day.
The European Central Bank also implemented a 0.25 percent interest-rate hike on Thursday, marking its second such increase in 2026. Investors are now awaiting the upcoming Consumer Price Index report, which serves as a key indicator before the next Fed decision.
