CoinDesk
Bitcoin fell nearly 2% over 24 hours to below $77,000 after August producer prices rose 5.4% against a 5.1% forecast, lifting 30-year Treasury yields to a 19-year high. The CoinDesk 20 fell about 3%, 95 of the CoinDesk 100 declined, and Bitcoin is less than $800 above the $76,270 support level identified by Bitget analyst Lewis Huang. Traders raised the implied odds of a Federal Reserve rate hike at the Sept. 15-16 meeting to near 70%, from roughly a coin flip two weeks ago.
Why it matters
Higher real yields pressure crypto through two channels. They make government debt more competitive with an asset that pays nothing and raise the cost of carrying leverage. Brent crude above $107 a barrel, WTI near $102 and the 10-year Treasury yield moving toward 5% add to the inflation pressure facing the Fed.
U.S. spot Bitcoin ETFs recorded $120 million of outflows on Wednesday, more than double Tuesday's figure. August CPI is expected at 3.4% headline and 2.4% core, making the release the next test for rate-hike pricing. The hawkish backdrop keeps the market focused on liquidity, leverage and ETF demand.
Market impact
Zcash led the losses, falling roughly 12% to about $1,134. Hyperliquid's HYPE dropped about 7%, Dogecoin lost about 6%, XRP fell about 3%, and Solana traded below $100. Ether held up better, down nearly 2% at about $2,445, while Tron was flat and up more than 3% on the week.
Bitcoin's near-term support line is $76,270. Traders are watching whether it holds as CPI approaches and rate-hike odds remain near 70%, while the broader market tracks whether ETF outflows accelerate.
Frequently asked questions
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Why did traders raise Fed rate-hike odds near 70%?
August producer prices rose 5.4% against a 5.1% forecast, lifting Treasury yields as traders repriced the Sept. 15-16 Federal Reserve meeting toward a rate increase. The implied odds moved near 70%.
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How large were U.S. spot Bitcoin ETF outflows?
U.S. spot Bitcoin ETFs recorded $120 million of outflows on Wednesday, more than double Tuesday's figure.
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How close is Bitcoin to the $76,270 support level?
Bitcoin is less than $800 above the $76,270 support level identified by Bitget analyst Lewis Huang.
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Which crypto assets led the broader selloff?
Zcash fell roughly 12%, HYPE about 7% and Dogecoin about 6%. XRP fell about 3%, while Solana traded below $100 and Ether fell nearly 2%.
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What inflation data are traders watching next?
August CPI is expected at 3.4% headline and 2.4% core, making it the next test for rate-hike pricing.
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