Bitcoin dropped below $77,000, declining by over $3,000 from its Monday peak following the release of the first major U.S. economic data of the week.
The Producer Price Index (PPI) recorded a 0.4% increase for the month, matching general expectations. However, the annual jump reached 5.4%, staying well above the Federal Reserve's 2% target and coming in 0.1% higher than expert anticipations. This higher-than-expected annual figure appears to have driven the immediate market decline.
Ahead of the data release, the cryptocurrency had already fallen from above $80,400 to $78,400 in anticipation of key economic reports. The official PPI release triggered a sharp further drop, sending bitcoin down by $1,000 within minutes.
Meanwhile, the core PPI, which excludes volatile sectors such as food and energy, increased by 0.2%, beating expectations of a 0.3% jump.
Markets are now looking ahead to additional economic reports, including the Consumer Price Index for August, which is scheduled for publication the following day. These reports precede the upcoming Federal Reserve meeting on September 15–16, where the central bank is set to announce its interest rate decision on September 16 amid rising odds of a rate hike over the preceding ten days.
