Bitcoin dropped to around $77,000 as surging oil prices, rising Fed rate-hike bets and fresh Bitcoin ETF outflows pushed traders toward safer assets. The selloff pushed total crypto market capitalization down about 1.55% to $2.62 trillion, and Bitcoin now fights a critical support zone that could open the door to a deeper drop.
Bitcoin trades around $77,225, down from $78,500 in the past 24 hours, as broader financial-market stress spreads into crypto. Total crypto market capitalization fell about 1.55% over the past 24 hours to $2.62 trillion, while trading volume rose roughly 3.1% to $84.3 billion.
Middle East Tensions and Fed Bets Drive the Selloff
Escalating tensions around Middle East shipping routes have pushed Brent crude as high as $109.97 a barrel, on track for roughly an 11% weekly gain. Markets now price a probability of a 25-basis-point Fed rate hike next week that has risen to around 71%, up from 61% in prior sessions. That comes after the latest US PPI showed producer prices rising 0.4% in August and 5.4% year over year, keeping inflation concerns on investors' radar. The 10-year Treasury yield reached 4.979%, just below the 5% level. The 30-year yield climbed to around 5.38%, and the US dollar index hovered around 99.
ETF Outflows and Liquidations Add Pressure
Bitcoin ETFs recorded $120.2 million in outflows, following a $46.6 million outflow the previous day, for roughly $166.8 million withdrawn across two sessions. Leverage has made the decline more volatile: more than $386 million in positions were liquidated, including roughly $270 million in long positions.
Bitcoin Fights Support Near $76,400
Bitcoin's five-hour chart shows a fight at the $76,400–$77,300 support zone, with price at $77,380 and momentum turning bearish. The MACD deepened to -505, signaling accelerating selling pressure. The RSI sits at 37.6, approaching short-term oversold territory. Should the support level break, a fast drop toward $72,900–$71,700 could follow, though bulls might attempt to defend just above $76,000.
Traders are now watching whether oil prices, US inflation and Fed policy ease enough to let Bitcoin stabilize. Otherwise, another surge in oil, hotter inflation or continued ETF outflows could extend the correction.
Sources: Coinpedia Fintech News, Cryptocurrency News
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