Bitcoin falls as US PPI overshoot and bond yields hit 19‑year high

Bitcoin (BTC) opened Thursday below $77,000 as risk assets were pressured by a combination of higher US inflation, surging oil prices and a breakout in long‑dated US Treasury yields.

US inflation data fuels market stress

The August Producer Price Index (PPI) rose 5.4% year‑on‑year, 0.1 percentage point above expectations, and the core PPI (excluding food, energy and trade services) increased 0.3% month‑on‑month. The stronger‑than‑expected reading lifted market expectations for a 0.25% Federal Reserve rate hike at the September 16 meeting to 69.8%.

Oil prices surge amid Middle East tensions

Geopolitical developments in the Middle East pushed West Texas Intermediate (WTI) crude above $100 per barrel for the first time since May, while Brent crude rose above $105 per barrel, approaching a 16‑week high.

US bond yields climb to multidecade levels

Despite a $6 billion Treasury buyback operation, the 30‑year US Treasury yield reached 5.353%, the highest level since June 2007. The 10‑year yield also rose to 4.924%, its highest since November 2023.

Impact on Bitcoin

TradingView data showed BTC/USD on track for a 2% loss for the day, mirroring weakness in US equities. Analysts noted that higher borrowing costs could have knock‑on effects for both governments and consumers, adding to the macro‑headwinds facing crypto assets.