Bitcoin falls on US PPI overshoot as 30-year bond yield hits new 19-year high — SkimNews
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- BTC/USD dropped about 2% on the day per TradingView data, tracking weakness in US equities after the PPI release.
- US PPI rose 5.4% year-on-year in August, 0.1 percentage point above expectations, with July's headline figure revised higher.
- CME FedWatch odds of a 0.25% September rate hike jumped to 69.8% from 61.2% the prior day in direct response to the data.
- US 30-year Treasury yield hit 5.353%, its highest since June 2007, while the 10-year reached 4.924%, the highest since November 2023.
- WTI crude surpassed $100/barrel for the first time since May 21 on Middle East escalation, with Brent passing $105 toward a 16-week high.
- The European Central Bank enacted its second 0.25% rate hike of 2026 the same day.
- Friday's CPI release will be the last major US inflation print before the Fed's September 16 rate decision.
Why it matters: A 0.1-point PPI overshoot was enough to swing September Fed hike odds nearly 9 points higher in a day, while the 30-year yield hit 5.353% — a level not seen since 2007 — exposing risk assets like Bitcoin to a tightening wall just as oil breached $100. Friday's CPI is now the single data point standing between traders and the Fed's decision.
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