Bitcoin slid beneath the $77,000 mark on Thursday as traders braced for the release of the latest U.S. consumer price index data, with the entire major cryptocurrency market flashing red heading into the closely watched inflation report.
Markets Turn Cautious Before Inflation Data
The retreat comes as investors position ahead of the August CPI print, an economic release that could sway expectations for the Federal Reserve's next policy move. Odds of a rate hike had climbed to nearly 70% in the run-up to the numbers, adding pressure across risk assets.
Bitcoin, the largest cryptocurrency by market value, has shed roughly 5% over the past week, extending a stretch of weakness that has left much of the digital-asset space on the defensive. The move below $77,000 marked a notable level for traders who had been watching support zones closely.
Every major token flashed red as the market held its breath for the inflation number.
Altcoins Feel the Squeeze
The selling pressure was not limited to bitcoin. Every major cryptocurrency traded lower ahead of the report, underscoring how tightly the sector remains correlated to macroeconomic signals and interest-rate expectations.
Zcash was among the day's sharpest decliners, tumbling 10% as the privacy-focused token gave back recent gains. The broad-based downturn highlighted the risk-off mood that gripped traders in the hours before the data landed.
- Bitcoin dropped below $77,000, down about 5% on the week
- Zcash fell 10% on the day
- Rate-hike odds neared 70% ahead of the CPI release
For now, market participants remain focused on how the inflation figures will shape the Fed's path, with any surprise potentially triggering fresh volatility across the crypto landscape.