- Bitcoin holds above $75K at $77,094 as the S&P 500 and Nasdaq fall sharply.
- Brent nears $107 after hitting $109.97, keeping inflation pressure elevated.
- The 10-year Treasury yield reaches 4.979% as September hike odds rise to 71.1%.
Bitcoin held above $75,000 on Friday even as higher energy prices, rising Treasury yields, and persistent inflation concerns pressured risk assets. As of today, the token traded near $77,094, down 0.2%, while ETH slipped 0.1% to about $2,458, keeping both cryptocurrencies under moderate pressure.
Similarly, U.S. equities posted steeper losses. The S&P 500 fell 0.58% Thursday to 7,591.75, while the Nasdaq declined 0.65% to 26,081.73. As a result, the S&P 500 has now lost about 2% across four sessions, marking its sharpest four-day decline since June.
Inflation Data Lifts Fed Hike Odds as Crypto Weakens
August producer prices reinforced concerns that inflation remains elevated. The headline Producer Price Index rose 0.4% from July and 5.4% from a year earlier. The measure excluding food, energy, and trade services increased 0.3% monthly and 4.7% annually, showing underlying price pressures remained firm.
Additionally, energy contributed heavily to the increase. Final-demand energy prices rose 4.2% in August, while diesel prices jumped 24.1% during the month. Those figures, combined with higher oil prices, shifted expectations for Federal Reserve policy.
Consequently, Fed Funds futures priced a 71.1% probability of a 25-basis-point September rate hike, up from 61.2% during the previous session. With policy expectations turning more restrictive, markets entered Friday’s CPI release with higher borrowing-cost risks already weighing on valuations.
Oil Above $100 and Rising Yields Pressure Risk Assets
Oil added further pressure after escalating U.S.-Iran hostilities disrupted energy routes. As a result, Brent crude reached a four-month high of $109.97 before easing toward $107. The benchmark remained on track for an 11% weekly gain, keeping energy-driven inflation risks elevated as investors monitored their effect on broader prices.
Bond markets reflected the same tightening backdrop. The U.S. 10-year Treasury yield climbed to 4.979%, its highest level in three years, while the 30-year yield reached 5.3836%, a 19-year high. Normally, higher government yields raise borrowing costs and increase competition for capital across stocks and cryptocurrencies.
Against that backdrop, Bitcoin and ETH fell less sharply than major U.S. equity indices. BTC’s hold above $75,000 therefore marked relative resilience during the broader sell-off. Meanwhile, attention shifted to Friday’s CPI report, which became the next key test for whether inflation pressures were extending beyond producer prices and energy costs.
However, the same macro forces remained in place across markets. Expensive energy, elevated yields, and firmer rate expectations continued to pressure ETH, the S&P 500, and Nasdaq.
Related: Bitcoin Price Prediction: Three Straight ETF Outflow Days — Is the Streak About to Break Bad?
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