The crypto market extended its decline after hotter US producer inflation, rising oil prices, and leveraged liquidations increased pressure across risk assets. Bitcoin fell below USD 77,000 after trading near USD 78,500 during the past 24 hours. Total market capitalization dropped to about USD 2.62 trillion as major altcoins also weakened.
Trading activity increased as prices fell. The 24-hour market volume reached roughly USD 84.3 billion, up about 3.1%. Bitcoin dominance stood near 59%, while Ethereum remained below USD 2,500.
August US producer prices rose 0.4%, renewing concerns that inflation remains persistent. The reading increased expectations for tighter Federal Reserve policy at the September 15-16 meeting.
Futures markets priced the chance of a rate increase near 70%, while economists had expected no change. The Fed kept its target range at 3.50% to 3.75% in July.
Three policymakers favored a quarter-point increase at that July meeting. Higher interest rates can support the dollar and reduce demand for speculative assets, including Bitcoin, altcoins, and crypto-related stocks.
Brent crude reached USD 104 after gaining 5% on Thursday. Oil also climbed more than 10% during the week and reached its highest level in 112 days.
Higher fuel costs can lift transportation, manufacturing and consumer prices. This pressure can keep inflation elevated and give the Federal Reserve less room to support risk markets.
Leveraged trading added another source of pressure. More than USD 190 million in long positions disappeared within one hour, including over USD 112 million linked to Bitcoin. Crypto ETF outflows also weighed on prices.
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Bitcoin traded near USD 77,225 after losing momentum from recent highs. Ethereum held above USD 2,450 but remained below USD 2,500, while XRP fell more than 3% toward USD 1.34. BNB traded near USD 714, while Solana and Hyperliquid moved below USD 100 and USD 80, respectively. The declines showed that selling extended beyond Bitcoin into several major altcoins.
Some tokens still gained despite the weaker market. Raydium rose more than 27.23%, while Ether.fi gained 9.60%, Aptos advanced 3.64%, and Polkadot added 2.10%. Zcash fell 13.23% but remained above USD 1,000. Meanwhile, the US Treasury completed a USD 5.1 billion debt buyback, bringing the weekly total to a record USD 17.7 billion.
Attention now centers on the September 15-16 Federal Reserve meeting and whether tighter policy expectations continue pressuring risk assets.