Key Takeaways
- Bitcoin declined to $77,189 following stronger-than-anticipated US PPI figures of 5.4%, pushing Federal Reserve rate increase probability to approximately 72%
- WTI crude oil exceeded $100 per barrel for the first time since late May, intensifying inflationary pressures
- The US 30-year treasury yield climbed to 5.353%, marking its highest point since mid-2007
- Bitcoin spot ETFs experienced $283 million in net withdrawals, extending the outflow streak to three days
- Coinbase’s CEO Brian Armstrong expressed his belief that Bitcoin has reached the lowest point in its present four-year cycle
Bitcoin tumbled beneath the $77,000 threshold on Thursday as a convergence of elevated inflation metrics, climbing oil costs, and ascending treasury yields triggered declines across risk-sensitive assets.
The leading cryptocurrency by market capitalization retreated 1.76% to settle at $77,189, in the wake of August’s Producer Price Index (PPI) figures published by the Bureau of Labor Statistics.
The headline PPI registered at 5.4% on an annual basis, marginally exceeding the 5.3% analyst consensus. Compounding market anxiety, July’s data underwent upward revisions, intensifying concerns as traders braced for Friday’s upcoming Consumer Price Index (CPI) announcement.
Expectations for a Federal Reserve rate adjustment surged following the release. Data from the CME FedWatch Tool indicated the likelihood of a 0.25% rate increase at the September 16 FOMC session climbed to nearly 72%, advancing from approximately 64% prior to the PPI announcement.
Energy market volatility contributed additional downward momentum. WTI crude penetrated the $100 per barrel threshold for the first time since late May, propelled by escalating military tensions between the United States and Iran concerning the Strait of Hormuz. Brent crude similarly advanced, surpassing $105 per barrel.
Treasury Yields Climb to Multi-Year Peaks
US treasury yields experienced significant appreciation throughout the trading session. The 30-year yield advanced to 5.353%, territory unseen since mid-2007. The 10-year yield touched 4.968%, representing its strongest performance since late 2023.
This upward movement occurred notwithstanding a $6 billion debt repurchase operation conducted by the US Treasury. Market commentary platform The Kobeissi Letter noted on X: “The bond market is quite literally fighting the US Treasury.”
In parallel developments, the European Central Bank implemented a 0.25% rate increase on Thursday, representing its second upward adjustment of 2026.
ETF Withdrawals and Declining Spot Market Activity
Cryptocurrency market analyst Ted Pillows cautioned on X that Bitcoin spot market 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 apprehension among market participants monitoring demand indicators.
Bitcoin spot ETFs documented $283 million in net withdrawals on September 10, as reported by Wu Blockchain on X. This represented the third consecutive trading session featuring net capital exits from Bitcoin ETF products.
Blockchain analytics additionally revealed Bitcoin sell-side pressure retreating to exceptionally low thresholds, with holders at the $80,000 price level demonstrating reduced selling activity.
Brian Armstrong, Chief Executive Officer of Coinbase, stated during an interview with Bloomberg Television in Singapore that his personal assessment suggests Bitcoin has completed the downward phase of its current four-year market cycle. He further noted improving regulatory conditions for cryptocurrency, characterizing the Clarity Act as “right on the finish line” in Senate proceedings.
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