Bitcoin Slides Below $77,000 as Hot U.S. PPI Hits Crypto Market
Bitcoin extended its decline Thursday after the latest U.S. producer inflation report reinforced concerns that price pressures remain elevated.
Summary:
- U.S. producer prices rose 0.4% in August and 5.4% year over year.
- Bitcoin fell below $77,000, with its four-hour RSI dropping close to oversold territory.
- Altcoins suffered larger losses as more than $437 million in long positions were liquidated.
BTC fell below $77,000, while losses accelerated across major altcoins and more than $500 million in leveraged crypto positions were liquidated.
The reaction comes ahead of Friday’s U.S. Consumer Price Index, leaving traders with another major inflation test before the Federal Reserve’s September meeting.
PPI Keeps Inflation Pressure Alive
The Producer Price Index rose 0.4% in August, while annual producer inflation accelerated to 5.4%, according to the Bureau of Labor Statistics. Prices excluding food, energy and trade services increased 0.3% for the month and 4.7% from a year earlier.
Goods were responsible for most of the pressure, rising 1.1% as energy prices jumped 4.2%. Diesel fuel surged 24.1%. Services increased a much smaller 0.1%.
The report kept attention on persistent inflation rather than giving risk markets the softer price signal they were looking for.
Bitcoin Breaks Below $77,000
Bitcoin was already under pressure before the data and continued lower during the session.
At the time of writing BTC is trading at approximately $76,920. Bitcoin had traded above $80,000 earlier in the week, but the chart has since developed a sequence of lower highs and lower lows.
Momentum has deteriorated quickly.
The four-hour RSI has dropped to 30.19, compared with its moving average at 42.36. That puts Bitcoin close to conventionally oversold territory, although a low RSI alone does not mean the decline has ended.
The immediate level to watch is around $76,600, which coincides with the latest intraday low. Losing that area would extend the current bearish structure.
READ MORE: Bitcoin Is Off Its Peak. Crypto’s Wealth Machine Didn’t
A recovery above $78,000 would give buyers a stronger signal that the latest selling wave is beginning to lose momentum.
Altcoins Absorb the Larger Losses
Bitcoin’s decline has spread across the market, but several major altcoins are falling considerably faster.
Total crypto market capitalization stands at $2.62 trillion, down 3.35%.
Dogecoin is taking the largest hit among the assets shown, while BNB, XRP, Solana, Hyperliquid and Zcash are all down at least 5%.
TRON stands out as the relative outperformer, slipping only 0.11% over 24 hours.
The broader pattern suggests traders are reducing higher-beta crypto exposure rather than treating Bitcoin’s decline as an isolated move.
Long Traders Take Most of the Liquidation Damage
Leverage is amplifying the selloff.
The derivatives data show $571.61 million in total liquidations, including $486.88 million in long positions and $84.73 million in shorts.
According to CoinGlass data, 163,499 traders were liquidated over the past 24 hours, with total liquidations reaching $571.70 million.
The largest single liquidation was a $22.63 million ETHUSDT position on Bitget.
The scale of the liquidations shows how quickly leveraged positions were caught by the broader crypto selloff. With more than half a billion dollars wiped out in a single day, forced position closures likely added to the downward pressure as Bitcoin and major altcoins extended their losses.
CPI Takes Over as the Next Trigger
The market now turns almost immediately from producer inflation to consumer inflation.
The Bureau of Labor Statistics is scheduled to release the August CPI at 8:30 a.m. ET on September 11, giving traders another reading on U.S. inflation only one day after PPI.
Bitcoin enters that event in a fragile position. The decline toward $76,600 has pushed four-hour momentum close to oversold territory, creating conditions for a rebound if sellers lose control.
But a stronger inflation reading could quickly overwhelm that technical setup.
For now, $76,600 is the downside level to watch for Bitcoin, while the heavier losses across altcoins and the concentration of liquidations in long positions show that the PPI reaction has already spread well beyond BTC.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
