Bitcoin Falls Below $77,000 as Inflation Data Fuels Fed Rate Hike Bets

Bitcoin dropped nearly 2% to below $77,000 after August producer price data came in hotter than expected, pushing Treasury yields to a 19-year high and raising expectations of a Federal Reserve interest rate increase.

Zcash Leads Losses Despite Strong Weekly Gains

Zcash saw the steepest drop, falling roughly 12% in a single day, though it remains up sharply over the past month. Hyperliquid, Dogecoin, XRP, and Solana also posted notable losses, while Ether and BNB held up relatively better. Tron was the only major asset to stay flat.

Rising Yields and Inflation Fears Weigh on Risk Assets

Oil prices jumped sharply, adding pressure to inflation concerns the Federal Reserve is monitoring ahead of its upcoming meeting. Treasury yields climbed further, making bonds more attractive compared to non-yielding assets like bitcoin. Traditional markets also declined, with major U.S. and Asian stock indexes falling for consecutive sessions.

Spot bitcoin funds recorded notable outflows this week, while some other crypto linked funds saw inflows. Market analysts now expect a rate increase at the Federal Reserve’s upcoming meeting, with odds having risen significantly over the past two weeks. Traders are closely watching upcoming inflation data for further signals on the central bank’s next move.