Bitcoin (BTC) collapses to $77,000... US inflation rocks the market

▲ Bitcoin (BTC), Federal Reserve (Fed)/AI generated image

Bitcoin (BTC) sharply dropped to the $77,000 level after US producer prices exceeded expectations.

According to cryptocurrency media outlet CryptoPotato on September 10 (local time), the US Producer Price Index (PPI) rose by 0.4% on a monthly basis. This was largely in line with market expectations. The annual inflation rate was recorded at 5.4%, significantly exceeding the Federal Reserve's (Fed) inflation target of 2%. It was also 0.1 percentage point higher than experts' forecasts.

Bitcoin had shown weakness even before the release of major economic indicators. Its price, which had exceeded $80,400, fell to $78,400. Immediately after the PPI announcement, it dropped an additional approximately $1,000 within just a few minutes, eventually falling to the $77,000 level.

The core Producer Price Index, excluding volatile food and energy, rose by 0.2%, falling below market expectations of 0.3%. The annual increase in overall producer prices and the core indicator showed different trends.

In the US, the August Consumer Price Index (CPI) will be announced on September 11. The Fed will hold a meeting from September 15 to 16, and the decision on the benchmark interest rate is expected to be revealed on the 16th. CryptoPotato reported that the likelihood of an interest rate hike has significantly increased over the past 10 days.

[Article Key Summary]

-The annual increase in the US Producer Price Index was 5.4%, exceeding both market expectations and the Fed's inflation target.

-Immediately after the announcement, Bitcoin fell by approximately $1,000, pushing it down to the $77,000 level.

-The market is closely watching the Consumer Price Index on September 11 and the Fed's benchmark interest rate decision on September 16.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*