Bitcoin Slides Below $77,000 as Fed Hike Odds Hit 71%

Bitcoin dropped to $77,225, down from $78,500 over the past day. The total crypto market capitalization fell 1.55% to $2.62 trillion. Traders increased activity, pushing 24-hour volume up 3.1% to $84.3 billion. This broad decline reflects a shift toward defensive positioning in global assets.

Altcoins faced significant selling pressure alongside Bitcoin. XRP fell more than 3% to $1.34. Solana and Hyperliquid lost key support levels at $100 and $80, respectively. Zcash dropped 13.23% but held above the $1,000 mark. Ethereum remained capped below $2,500, trading near $2,450.

Macro Pressures Drive Risk Off

Market anxiety stems from rising inflation signals. US producer prices increased 0.4% in August, a 5.4% year-over-year rise. This data strengthened expectations for tighter monetary policy. The probability of a 25-basis-point Federal Reserve rate hike next week climbed to 71%, up from 61%.

Brent crude oil reached $109.97 per barrel due to Middle East tensions. This represents an 11% weekly gain in energy costs. Higher oil prices feed directly into inflation concerns. Investors are reacting by moving capital out of high-risk sectors like crypto.

Yields and Dollar Strength Hurt

US Treasury yields approached critical thresholds. The 10-year yield hit 4.979%, just under the 5% mark. The 30-year yield rose to 5.38%. The US Dollar Index hovered near 99, supported by safe-haven demand. A stronger dollar typically reduces liquidity available for alternative assets.

Stablecoins Show Resilient Volume

Stablecoin trading remained robust despite the broader sell-off. Their combined 24-hour volume exceeded $90 billion. This indicates continued capital movement within the crypto ecosystem. Bitcoin dominance stayed at 59%, showing it remains the primary store of value. GN markets/crypto (en-US) reports that this volume suggests internal liquidity is shifting rather than exiting the sector entirely.