Bitcoin Drops Below $77K After the First Inflation Report of the Week

Bitcoin experienced a sharp decline below the $77,000 threshold following the release of the latest United States Producer Price Index (PPI) inflation report. The headline PPI revealed a 0.4% month-over-month increase and a 5.4% annual advance, exceeding consensus forecasts by 0.1% and remaining well above the Federal Reserve's 2.0% long-term target. The higher-than-expected data triggered an immediate reaction across risk assets, sending Bitcoin down by $1,000 within minutes of the publication. The cryptocurrency has now lost more than $3,000 from its Monday peak above $80,400, having already weakened to $78,400 leading into the economic release. In contrast to headline figures, core PPI, which strips out volatile food and energy sectors, rose 0.2% monthly against expectations of 0.3%. Markets are now closely monitoring the upcoming August Consumer Price Index (CPI) release as the final major economic indicator before the Federal Reserve's rate decision on September 16, where market expectations for further monetary tightening have increased significantly.