TLDR
- Bitcoin dropped to $77,189 as hotter-than-expected US PPI data of 5.4% raised Fed rate hike odds to ~72%
- WTI crude oil topped $100 per barrel for the first time since May 21, adding to inflation concerns
- The US 30-year bond yield hit 5.353%, its highest level since June 2007
- Bitcoin spot ETFs saw $283 million in net outflows, marking three consecutive days of outflows
- Coinbase CEO Brian Armstrong said he believes Bitcoin has bottomed in its current four-year cycle
Bitcoin fell below $77,000 on Thursday as a combination of hot inflation data, surging oil prices, and rising bond yields pushed risk assets lower.
The world’s largest cryptocurrency dropped 1.76% to $77,189, following the release of the August Producer Price Index (PPI) report from the Bureau of Labor Statistics.
Headline PPI came in at 5.4% year-on-year, one tick above the 5.3% consensus estimate. July’s figures were also revised upward, adding further pressure on markets already on edge ahead of Friday’s Consumer Price Index (CPI) release.
BREAKING: August PPI Inflation rises to 5.4%, above expectations of 5.3%.
Core PPI Inflation rose to 4.6%, the highest since June 2026.
July's headline and core PPI inflation numbers were also revised higher.
The odds of rate hikes are rising further on the news.
— The Kobeissi Letter (@KobeissiLetter) September 10, 2026
Fed rate hike odds jumped after the data. According to the CME FedWatch Tool, the probability of a 0.25% hike at the September 16 FOMC meeting rose to nearly 72%, up from around 64% before the PPI print.
Oil prices added another layer of pressure. WTI crude crossed $100 per barrel for the first time since May 21, driven by renewed military action between the US and Iran over the Strait of Hormuz. Brent crude followed, topping $105 per barrel.
Bond Yields Surge to Multi-Decade Highs
US bond yields rose sharply on the day. The 30-year yield reached 5.353%, a level not seen since June 2007. The 10-year yield hit 4.968%, its highest since November 2023.
This came despite the US Treasury executing a $6 billion debt buyback operation. Trading resource The Kobeissi Letter commented on X: “The bond market is quite literally fighting the US Treasury.”
The European Central Bank also raised rates by 0.25% on Thursday, marking its second hike of 2026.
ETF Outflows and Spot Demand Weaken
Crypto analyst Ted Pillows warned on X that Bitcoin spot demand has fallen to the same level as when BTC was trading at $69,000, saying: “Either spot buyers need to do the lifting, or the price will inevitably drop to $70,000.” His comments reflect growing concern among traders watching demand-side data closely.
$BTC spot demand has fallen to the same level when Bitcoin was trading at $69,000.
Either spot buyers need to do the lifting, or the price will inevitably drop to $70,000. pic.twitter.com/qfiuSwMcT2
— Ted (@TedPillows) September 10, 2026
Bitcoin spot ETFs recorded $283 million in net outflows on September 10, according to Wu Blockchain on X. That marked three straight days of net outflows from Bitcoin ETFs.
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
On-chain data also showed Bitcoin sell-side risk returning to rare lows, with $80,000 sellers fading from view.
Coinbase CEO Brian Armstrong, speaking to Bloomberg Television in Singapore, said he personally believes Bitcoin has seen the bottom of its current four-year cycle. He added that crypto regulatory clarity is improving, with the Clarity Act described as “right on the finish line” in the Senate.
