TLDR
- Bitcoin fell nearly 2% to below $77,000 after U.S. Producer Price Index data came in hotter than expected
- Annual producer prices rose 5.4%, pushing Fed rate hike odds to 74% for the September 15-16 meeting
- Zcash led crypto losses, dropping around 12%, while XRP fell roughly 4% and Solana broke below $100
- U.S. spot Bitcoin ETFs recorded $120 million in outflows on Wednesday, more than double Tuesday’s figure
- The S&P 500 closed lower at around 7,594, marking its fourth straight daily decline
Bitcoin dropped close to 2% over 24 hours, falling below $77,000 after the latest U.S. inflation report showed producer prices rising faster than expected. The data pushed traders to increase bets that the Federal Reserve will raise interest rates at its upcoming meeting.
The U.S. Bureau of Labor Statistics reported that the Producer Price Index rose 5.4% on an annual basis, slightly above the 5.3% forecast. Month-on-month, producer prices rose 0.4%, in line with expectations. Core PPI ticked up 0.2% month-on-month after a 0.3% drop previously.
Following the data release, the CME FedWatch tool showed traders pricing in a 74% chance of a rate hike at the September 15-16 Federal Open Market Committee meeting, targeting a 3.75% to 4.00% rate range.
Bitcoin was trading around $77,300 at the time of writing. Analysts at Bitget noted that $76,270 is a key technical support level, and Bitcoin is now less than $800 above it.
Crypto Market Takes a Broad Hit
The CoinDesk 20 index fell around 3%, nearly twice Bitcoin’s decline. Ninety-five of the CoinDesk 100 tokens ended the session lower.
Zcash was the biggest loser among major tokens, falling roughly 12% to around $1,134. The drop came after a strong recent run that still leaves it up around 34% on the week and nearly 145% over the past month.
Hyperliquid’s HYPE fell about 7% to just under $79, extending its weekly loss to around 10%. Dogecoin shed around 6% to 8 cents.
XRP dropped roughly 3% to $1.34 and is down nearly 7% over seven days. Solana fell more than 3% and broke below the $100 level. Ether held up better than most, down just under 2% at around $2,445.
Tron was the one major token to hold steady, trading flat at 34 cents and up more than 3% on the week.
Rate Hike Fears Hit ETFs and Equities
U.S. spot Bitcoin ETFs saw $120 million in outflows on Wednesday, more than doubling Tuesday’s figure. Funds tied to Ether, XRP, and Solana did take in money on the same day.
Bitcoin Spot ETFs Saw Total Net Outflows of $283 Million Yesterday, Marking Three Consecutive Days of Net Outflows
On September 10 (ET), Bitcoin spot ETFs recorded total net outflows of $283 million, marking three consecutive days of net outflows. Ethereum spot ETFs saw total… pic.twitter.com/v4FFtB67Z8
— Wu Blockchain (@WuBlockchain) September 11, 2026
The S&P 500 closed lower at around 7,594, its fourth straight losing session. Asian equity futures also fell, with Japan down nearly 2%, Korea more than 3%, and Hong Kong close to 1%.
The 30-year Treasury yield hit a 19-year high. The 10-year yield pushed toward 5%, and the two-year moved above 4.5%.
Brent crude rose above $107 a barrel, up more than 6%, adding further pressure to the inflation outlook.
All eyes now turn to Friday’s Consumer Price Index report, due at 8:30 a.m. ET. Headline inflation is expected at 3.4% year-over-year and core at 2.4%. The result could either add to or ease pressure on crypto and equity markets ahead of the Fed meeting.
