Key TakeawaysBitcoin declined approximately 2% and slipped beneath the $77,000 threshold following unexpectedly strong U.S. Producer Price Index figuresProducer prices climbed 5.4% year-over-year, elevating the probability of a Federal Reserve rate increase to 74% for the mid-September policy meetingZcash experienced the steepest decline among major cryptocurrencies with a 12% plunge, while XRP retreated roughly 4% and Solana dipped under the $100 markSpot Bitcoin exchange-traded funds in the United States witnessed $120 million in net withdrawals on Wednesday, exceeding Tuesday’s outflows by more than twofoldThe S&P 500 index declined to approximately 7,594, extending its losing streak to four consecutive trading sessionsBitcoin experienced a nearly 2% decline across a 24-hour period, sliding beneath the $77,000 threshold after fresh U.S. inflation metrics revealed producer prices accelerating beyond analyst projections. The economic data prompted market participants to significantly increase expectations that the Federal Reserve will implement an interest rate hike during its forthcoming policy gathering.Bitcoin (BTC) PriceAccording to the U.S. Bureau of Labor Statistics, the Producer Price Index advanced 5.4% on a year-over-year basis, marginally surpassing the consensus estimate of 5.3%. On a monthly basis, producer prices climbed 0.4%, matching expectations precisely. The core PPI measure increased 0.2% month-over-month, recovering from a previous 0.3% contraction.In the aftermath of the inflation release, the CME FedWatch tool indicated that market participants were assigning a 74% probability to an interest rate increase at the Federal Open Market Committee’s September 15-16 gathering, anticipating a target range of 3.75% to 4.00%.At press time, Bitcoin was changing hands near $77,300. Analysts from Bitget highlighted that $76,270 represents a critical technical support threshold, with Bitcoin currently trading less than $800 above this crucial level.Widespread Weakness Across Digital Asset MarketsThe CoinDesk 20 index retreated approximately 3%, representing nearly double Bitcoin’s percentage decline. An overwhelming ninety-five tokens within the CoinDesk 100 concluded the trading session in negative territory.Zcash emerged as the most significant loser among prominent digital assets, plummeting roughly 12% to approximately $1,134. This downturn followed a robust recent rally that nonetheless leaves the token up around 34% over the weekly timeframe and approaching 145% gains across the past 30 days.Hyperliquid’s HYPE token decreased about 7% to just below $79, compounding its weekly losses to approximately 10%. Dogecoin shed around 6%, retreating to 8 cents.XRP declined roughly 3% to $1.34, bringing its seven-day losses to nearly 7%. Solana fell more than 3%, breaching the psychologically significant $100 threshold. Ether demonstrated relative resilience compared to most alternatives, declining just under 2% to trade around $2,445.Tron distinguished itself as the sole major cryptocurrency to maintain stability, remaining flat at 34 cents while posting gains exceeding 3% across the weekly period.Monetary Policy Concerns Pressure ETFs and Traditional MarketsU.S. spot Bitcoin exchange-traded funds registered $120 million in net outflows during Wednesday’s session, representing more than double the previous day’s redemptions. Meanwhile, investment products linked to Ether, XRP, and Solana attracted inflows on the identical trading day.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, 2026The S&P 500 concluded trading lower at approximately 7,594, marking its fourth consecutive daily retreat. Asian equity futures also displayed weakness, with Japanese contracts declining nearly 2%, Korean futures falling more than 3%, and Hong Kong contracts down close to 1%.The 30-year Treasury yield reached a 19-year peak. The benchmark 10-year yield approached the 5% level, while the two-year yield climbed above 4.5%.Brent crude oil surged above $107 per barrel, advancing more than 6%, intensifying concerns regarding the broader inflation trajectory.Market attention now shifts toward Friday’s Consumer Price Index release, scheduled for 8:30 a.m. Eastern Time. Economists anticipate headline inflation at 3.4% annually and core inflation at 2.4%. The forthcoming data could either amplify or alleviate pressure across cryptocurrency and equity markets in advance of the Federal Reserve’s policy decision.The post Bitcoin (BTC) Tumbles Below $77K as Sizzling PPI Data Fuels Rate Hike Speculation appeared first on Blockonomi.