Cryptos Tumble, Bitcoin Drops Below $77,000 as US August PPI Beats Expectations, Sparking Rate Hike Fears

TradingKey - US August PPI Surges! Expectations of Consecutive Fed Rate Hikes Resurface, Sparking Crypto Bloodbath as BTC Plunges Below $77,000.

On September 11, cryptocurrencies extended their losses, with major coins plunging across the board. Among them, Bitcoin (BTC) fell 2%, dropping below the $77,000 mark; Ethereum (ETH) and Binance Coin (BNB) were relatively resilient, down only about 1%; Ripple (XRP) fell nearly 4%, while ZEC plummeted nearly 12%.

The collective plunge in cryptocurrencies once again dealt a heavy blow to bulls. Among them, the Sentiment Index continued its pullback to 67, and although it remained in a state of greed, it hit its lowest level in the past month. According to Coinglass data, liquidations across the network reached $456 million over the past 24 hours, with long positions accounting for as much as $360 million, or 78%.

Yesterday, the US reported that the August PPI rose 5.4% year-over-year, higher than the expected 5.3% and July's revised 4.8%; the month-over-month rate was 0.4%. Core PPI, which excludes food and energy, rose to 4.6% year-over-year. Following the data release, the market's expected probability of a 25-basis-point rate hike at the Fed's September FOMC meeting rose significantly, with the CME FedWatch tool showing the probability climbing above 70%.