Bitcoin dips below $77,000 as Coinbase CEO calls cycle bottom

Bitcoin fell below $77,000 on Thursday around the US market open after a hotter-than-expected US Producer Price Index reading, a jump in oil following strikes in the Middle East, and a rise in long-term Treasury yields. Coinbase CEO Brian Armstrong declared the market cycle bottom.

The US Bureau of Labor Statistics reported the headline Producer Price Index rose 5.4% year‑over‑year in August and 0.4% month‑to‑month. Prices for final demand goods advanced 1.1% and the index for final demand services increased 0.1%. The measure excluding foods, energy and trade services rose 0.3% in August and was up 4.7% over the past 12 months.

Markets raised the odds of Federal Reserve tightening after the report. The CME Group FedWatch tool showed roughly a 70% probability of a 25 basis‑point rate increase at the Sept. 16 meeting.

Long‑term Treasury yields climbed, with the 10‑year above 4.9% — its highest since November 2023 — and the 30‑year near 5.35%, a level last seen in June 2007. Those moves came despite the Treasury repurchasing $6 billion in a stepped‑up buyback operation on Wednesday. On X, one trading newsletter wrote, “The bond market is quite literally fighting the US Treasury.”

Strikes in the Middle East pushed West Texas Intermediate crude above $100 per barrel for the first time since May 21, while Brent approached $105 per barrel. Energy accounted for much of the goods‑price increase in the PPI report.

TradingView data showed BTC/USD down about 2% on the day as US equities weakened. Spot gold fell more than 1% toward $4,350 after trading above $4,400 earlier in the week. Higher Treasury yields increase the appeal of cash and government debt because neither gold nor Bitcoin pays interest.

The US Consumer Price Index due Friday will be the next major inflation release before the Fed decision. The European Central Bank raised rates by 25 basis points on Thursday, its second increase this year.