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

BTC is down by over $3,000 from the Monday peak.

The first major economic event in the United States for the next week or so just came live, as the Producer Price Index (PPI) showed a 0.4% increase for the month, which was pretty much in line with expectations.

The annual jump is quite high at 5.4%, which is well above the 2% target set by the Federal Reserve. Moreover, it’s 0.1% higher than what experts anticipated, which could be the main reason behind BTC’s immediate decline.

CryptoPotato noted earlier that the cryptocurrency had already dropped from over $80,400 to $78,400 in anticipation of the upcoming key economic events. However, the PPI data pushed it south hard, with bitcoin dropping by $1,000 in minutes after the report went live.

Excluding more volatile sectors like food and energy, the core PPI showed an increase of 0.2%, which actually beat the expectations of a 0.3% jump.

As reported earlier, the next week or so is likely to be a fundamental one in terms of global economic activities. Aside from the PPI data today, the Consumer Price Index for August will be published tomorrow, which will be the last stop before the Federal Reserve meeting on September 15-16.

The central bank will announce its rate decision on September 16, with odds of a hike rising sharply over the past 10 days.