Crypto sold off broadly on Thursday as Brent crude jumped to $106.83 a barrel and traders raised the odds of a Federal Reserve rate increase next week to 64%. Bitcoin fell to $77,120 as an oil shock pushed Treasury yields to multi-year highs and August producer prices reinforced concerns over persistent inflation.
Bitcoin traded at $77,120, down 2.1% over 24 hours and 5.1% over seven days, after swinging between $76,748 and $78,774. Ether fell to $2,448.88, down 1.9% on the day. XRP dropped 4.8% to $1.35, Solana declined 3.6% to $99.69 and BNB fell 4.4% to $708.37.
One hundred and three of the 125 largest non-stablecoin tokens fell over 24 hours, while 21 rose and one was unchanged. Total crypto market value stood at $2.64 trillion on $94.2 billion of volume, with bitcoin dominance at 58.5%.
Oil Shock Drives The Selloff
Brent crude traded at $106.83 a barrel on Thursday afternoon, up 5.6% on the day and its highest level since May 19. The contract has risen 11.7% since Sept. 2, when it settled at $95.63.
U.S. Central Command said its forces destroyed five Iranian crude oil carriers on Sept. 8, after the Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles twice over the prior two days. The strikes followed an earlier round of three tanker strikes on Sept. 5.
Producer Prices Push Hike Odds Higher
The Bureau of Labor Statistics reported that August producer prices for final demand rose 0.4% on the month, against 0.1% in July, and 5.4% over 12 months. Core prices rose 0.3% on the month and 4.7% over the year.
The report reinforced concerns that inflation remains elevated. According to Infinox regional director Thadeu Dos Santos, the figures reinforced concerns that "inflation remains persistent", pointing to the combination of elevated oil prices and a labor market that has proved more robust than anticipated.
Odds of a quarter-point rate hike at next week's Fed meeting rose from 52.5% at 8 a.m. ET to 63.5% by early afternoon, Polymarket data show. The 10-year Treasury yield reached 4.92%, its highest since Oct. 25, 2023, while the 30-year yield climbed to 5.34%.
U.S. spot bitcoin ETFs recorded $120.2 million of outflows on Wednesday, following $46.6 million of outflows on Tuesday. The Crypto Fear and Greed Index read 69, or greed, up from 66 on Wednesday.
Source: The Defiant
Trading involves risk.
Risk Disclaimer
