Bitcoin Dips Below $77,000 Amid Renewed Market Pressure
On September 10, Bitcoin's price dropped below $77,000, reaching lows around $76,676. This decline coincided with crude oil prices breaking the $100-per-barrel threshold, drawing investor attention to surging energy costs. Meanwhile, technology-heavy Nasdaq 100 futures slipped by 0.7%. US Treasury yields climbed, with the 10-year note yield nearing 4.93% and the 30-year bond hitting 5.35%, its highest level in 19 years. These shifts signal mounting market anxiety about the Federal Reserve potentially increasing interest rates again in its upcoming meeting.
Oil Prices Surge on Middle East Supply Concerns
Energy prices accelerated notably, with West Texas Intermediate crude rising more than 4% to exceed the $100 mark for the first time, while Brent crude surpassed $105, marking a nearly 30% increase since early August. The sharp rally stems mainly from heightened geopolitical tensions affecting Middle Eastern shipping lanes, which raise fears of supply disruptions.
In August, the US Producer Price Index (PPI) rose by 0.4% month-over-month and 5.4% year-over-year, exceeding July's 4.8% growth. Core PPI increased by 0.2%, below expectations of 0.3%. However, this data only partially captures recent spikes in oil prices, as measurements stopped on August 11 before the latest oil surge. Joseph Brusuelas, chief economist at RSM US LLP, warned that energy cost pressures will likely begin to manifest more fully in wholesale and core inflation measures in September.
ECB Raises Rates Again, Putting Pressure on Global Bonds
The European Central Bank followed suit on September 10 by hiking its deposit rate by 25 basis points to 2.5%, marking its second increase this year. This move addresses inflation in the Eurozone, which has risen above 3%, fueled largely by higher energy prices. The ECB also revised its inflation forecast for 2027 upwards to 2.5%, contributing to upward pressure on sovereign bond yields worldwide as investors demand higher returns amid expectations of continued monetary tightening.
US Treasury Yields Near Critical Levels
The US Treasury market faces multiple headwinds, with the 10-year note yield approaching the psychologically significant 5% barrier, while the 30-year bond yield reached 5.35%, close to thresholds for recent long-term bond repurchase operations. The Treasury Department has increased these repurchase transactions to $6 billion in efforts to ease liquidity strains. Brusuelas expects that if the upcoming US Consumer Price Index (CPI) release on September 11 surpasses estimates, the 10-year yield could breach the 5% level.
The 2-year Treasury yield has also risen to about 4.50%, well above the Federal Reserve's current target range of 3.50%–3.75%, reflecting market anticipation of ongoing monetary policy tightening.
Crypto Market Faces Heightened Volatility and Liquidations
Macro data releases and energy market disruptions have triggered large-scale liquidations in crypto markets. Over the past 24 hours, CoinGlass recorded forced closures of positions for more than 161,900 traders, totaling approximately $568 million in liquidations. Bitcoin longs suffered losses around $138 million, with Ethereum longs losing roughly $113 million. Data from CryptoQuant reveals that Binance users alone sold over $1.4 billion worth of Bitcoin, indicating traders adjusting portfolios amid declines.
On-chain metrics from Glassnode show significant supply resistance walls between $76,000 and $82,000 for Bitcoin. Additionally, long-term holders have accumulated roughly 1.07 million BTC concentrated between $83,000 and $86,000. The current $76,000 support level constitutes a critical test point. Should this support fail decisively, Bitcoin’s bottom accumulation zone could shift downward to the $62,000–$65,000 range.
Upcoming CPI Report on September 11 Will Guide Market Direction
Consensus forecasts anticipate the August CPI to rise 0.4% month-over-month, with core CPI increasing 0.2%. Should inflation figures exceed expectations, it will likely reinforce sentiment for additional Federal Reserve rate hikes and drive the 10-year Treasury yield beyond 5%, exerting further downward pressure on Bitcoin prices. However, due to data lag, inflation statistics may not fully capture the recent surge in oil prices. As subsequent reports incorporate the energy cost impact more thoroughly, market participants should monitor official inflation data closely for its cascading effects on asset valuations.