Crypto Market Crash: 4 Reasons Prices Are Going Down

The crypto market today fell 2.18% to $2.62 trillion after hotter United States inflation data. 

Bitcoin price dropped below $77,000, while Ethereum slipped toward $2,470 and XRP price traded near $1.38.

The decline followed an August producer inflation report that revived concerns about a Federal Reserve rate increase. Rising oil prices, leveraged liquidations, and crypto ETF outflows pressured crypto prices.

Crypto Market Crash Deepens as Bitcoin Falls Below $77,000

Bitcoin price fell 2.05% over 24 hours to $76,987 after a $1,200 Thursday sell-off. The move tested a support area and weakened sentiment across altcoins.

Ethereum retreated toward $2,470, while XRP slipped to $1.38 as traders reduced exposure before Friday’s inflation report. The Crypto Fear and Greed Index declined to 68, reflecting fading appetite after gains.

Hotter PPI Data Fuels Inflation and Interest Rate Concerns

August producer prices rose 0.4%, reinforcing fears that inflation remains too persistent for policymakers. The reading raised expectations for Fed tightening at its September 15-16 meeting.

Futures priced a rate increase near 70%, as economists expected no change. The Fed maintained its target range at 3.50% to 3.75% in July, when three policymakers favored a quarter-point increase.