The crypto market today fell 2.18% to $2.62 trillion after hotter United States inflation data.
Bitcoin price dropped below $77,000, while Ethereum slipped toward $2,470 and XRP price traded near $1.38.
The decline followed an August producer inflation report that revived concerns about a Federal Reserve rate increase. Rising oil prices, leveraged liquidations, and crypto ETF outflows pressured crypto prices.
Crypto Market Crash Deepens as Bitcoin Falls Below $77,000
Bitcoin price fell 2.05% over 24 hours to $76,987 after a $1,200 Thursday sell-off. The move tested a support area and weakened sentiment across altcoins.
Ethereum retreated toward $2,470, while XRP slipped to $1.38 as traders reduced exposure before Friday’s inflation report. The Crypto Fear and Greed Index declined to 68, reflecting fading appetite after gains.
Hotter PPI Data Fuels Inflation and Interest Rate Concerns
August producer prices rose 0.4%, reinforcing fears that inflation remains too persistent for policymakers. The reading raised expectations for Fed tightening at its September 15-16 meeting.
Futures priced a rate increase near 70%, as economists expected no change. The Fed maintained its target range at 3.50% to 3.75% in July, when three policymakers favored a quarter-point increase.
Higher rates strengthen the dollar and weaken speculative demand. That combination can reduce demand for crypto markets, Bitcoin, altcoins, and crypto-related stocks.
Rising Oil Prices and Long Liquidations Intensify the Sell-Off
Brent crude reached $104 for the first time in 112 days after gaining 5% Thursday. Oil advanced more than 10% this week, raising concerns that energy costs could sustain inflation.
Higher fuel costs can raise transportation, manufacturing, and consumer prices. That pressure may leave the Fed less flexibility to support risk markets.
BREAKING: Bitcoin crashed -$1200 and dropped below $77,000 as PPI came in hotter than expected.
Over $190 million in longs liquidated over the last 60 minutes. pic.twitter.com/XqXiOoFWHw
— Bull Theory (@BullTheoryio) September 10, 2026
Forced liquidations accelerated the decline as leveraged positions unraveled. More than $190 million in long positions disappeared within one hour, including over $112 million tied to Bitcoin.
The Treasury completed a $5.1 billion debt buyback, bringing the weekly total to a record $17.7 billion.
Crypto ETF Outflows Signal Weakening Institutional Demand
United States spot Bitcoin ETFs recorded $46.65 million in net outflows on September 8, according to SoSoValue. The result ended three consecutive sessions of net inflows and suggested institutional demand had weakened.
According to SoSoValue, U.S. spot Bitcoin ETFs saw total net outflows of $46.6464 million on September 8 ET, marking the first net outflow after three consecutive days of net inflows. U.S. spot Ethereum ETFs saw total net outflows of $24.2921 million, while Fidelity’s FETH led… pic.twitter.com/rwd2tSryeP
— Wu Blockchain (@WuBlockchain) September 9, 2026
Spot Ethereum ETFs posted $24.29 million in net outflows during the session. Fidelity’s FETH bucked the trend, attracting $9.89 million in net inflows.
Investors also face policy uncertainty as the Federal Reserve meets September 15 and 16. Updated economic projections could shape expectations for rates and liquidity.
The Senate’s scheduled September 15 cloture vote on the CLARITY Act adds another risk. The motion needs 60 votes to begin debate.
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