Bitcoin struggles near $77,300 as Brent crude tops $100 and Fed rate hike expectations surge, triggering four consecutive days of spot ETF outflows and persistent selling pressure.
Bitcoin drops due to hot CPI data, Fed rate hike expectations, ETF outflows, and long-term holder selling.
Brent crude broke $100, contributing to inflation and repricing of Fed hike.
VIX spiked 24.6% in a week as equities repriced on rate hike fears.
Bitcoin faces a triple threat of rising inflation, ETF outflows, and heavy selling from long-term holders. Hot August CPI data has pushed market expectations for a September 16 Fed rate hike to 83%, driving yields higher and draining liquidity from non-yielding assets.
Bitcoin lacks cash flow or coupons, making it sensitive to rising interest rates. As Fed rate hike expectations increase, the opportunity cost of holding non-yielding assets rises, leading investors to favor higher-yielding government bonds.
Market analysts are watching the $76,500 to $77,000 band closely. A daily close below $76,500 could signal a further decline toward the $72,000 to $74,000 range.