Key HighlightsBitcoin slid to $77,189 following stronger-than-anticipated US PPI figures of 5.4%, pushing Federal Reserve rate hike probabilities to approximately 72%WTI crude oil breached the $100 per barrel mark for the first time since May 21, intensifying inflationary pressuresTreasury 30-year bond yields climbed to 5.353%, reaching levels unseen since June 2007Spot Bitcoin ETFs experienced $283 million in net withdrawals, extending the outflow streak to three consecutive sessionsBrian Armstrong, CEO of Coinbase, expressed his belief that Bitcoin has reached its cyclical bottom within the current four-year patternBitcoin tumbled beneath the $77,000 threshold on Thursday as a perfect storm of elevated inflation figures, climbing oil costs, and escalating bond yields sent risk-sensitive assets into retreat.Bitcoin (BTC) PriceThe leading digital currency by market capitalization declined 1.76% to settle at $77,189, immediately following the Bureau of Labor Statistics’ release of the August Producer Price Index (PPI) figures.The headline PPI registered at 5.4% on an annual basis, marginally exceeding the 5.3% market consensus. Compounding market anxiety, July’s numbers underwent upward revisions, intensifying pressure on investors already bracing for Friday’s Consumer Price Index (CPI) announcement.BREAKING: August PPI Inflation rises to 5.4%, above expectations of 5.3%.Core PPI Inflation rose to 4.6%, the highest since June 2026.July's headline and core PPI inflation numbers were also revised higher.The odds of rate hikes are rising further on the news.— The Kobeissi Letter (@KobeissiLetter) September 10, 2026Market expectations for a Federal Reserve rate increase spiked following the inflation report. Data from the CME FedWatch Tool indicates the likelihood of a 0.25% rate increase at the September 16 FOMC gathering surged to nearly 72%, climbing from approximately 64% prior to the PPI announcement.Energy markets contributed additional stress to the equation. WTI crude surpassed $100 per barrel for the first time since late May, fueled by escalating military tensions between the United States and Iran concerning the Strait of Hormuz. Brent crude similarly climbed, exceeding $105 per barrel.Treasury Yields Climb to Generational HeightsUS Treasury yields experienced substantial upward movement throughout the session. The 30-year maturity yield touched 5.353%, marking its highest reading since June 2007. The benchmark 10-year yield reached 4.968%, a level last witnessed in November 2023.These movements occurred even as the US Treasury implemented a $6 billion debt repurchase program. Financial analysis platform The Kobeissi Letter noted on X: “The bond market is quite literally fighting the US Treasury.”In Europe, the European Central Bank implemented a 0.25% rate increase on Thursday, representing its second hike during 2026.Weakening ETF Flows and Spot Market DemandCryptocurrency market analyst Ted Pillows issued a warning on X that spot Bitcoin demand has contracted to levels comparable to when BTC traded at $69,000, stating: “Either spot buyers need to do the lifting, or the price will inevitably drop to $70,000.” His observations underscore mounting concerns among market participants monitoring demand indicators.$BTC spot demand has fallen to the same level when Bitcoin was trading at $69,000.Either spot buyers need to do the lifting, or the price will inevitably drop to $70,000. pic.twitter.com/qfiuSwMcT2— Ted (@TedPillows) September 10, 2026According to Wu Blockchain reporting on X, Bitcoin spot ETFs registered $283 million in net withdrawals on September 10. This represented the third consecutive trading day of negative flows from Bitcoin exchange-traded products.Bitcoin Spot ETFs Saw Total Net Outflows of $283 Million Yesterday, Marking Three Consecutive Days of Net OutflowsOn September 10 (ET), Bitcoin spot ETFs recorded total net outflows of $283 million, marking three consecutive days of net outflows. Ethereum spot ETFs saw total… pic.twitter.com/v4FFtB67Z8— Wu Blockchain (@WuBlockchain) September 11, 2026Blockchain analytics further revealed Bitcoin sell-side risk declining to unusually low thresholds, with sellers at the $80,000 price level virtually disappearing from the market.During an interview with Bloomberg Television from Singapore, Coinbase CEO Brian Armstrong shared his personal conviction that Bitcoin has established the floor of its present four-year market cycle. Armstrong noted that cryptocurrency regulatory frameworks are showing signs of improvement, characterizing the Clarity Act as “right on the finish line” for Senate passage.The post Bitcoin (BTC) Slides to $77K Amid Inflation Surge, $100 Oil, and ETF Exodus — What Lies Ahead? appeared first on Blockonomi.