Bitcoin dropped below $77,000 as stronger-than-expected U.S. producer inflation increased expectations for a more hawkish Federal Reserve. BTC fell nearly 2% over 24 hours and has now declined more than 5% over the past week.

Producer prices rose 5.4% in August, exceeding the 5.1% forecast and pushing 30-year Treasury yields to a 19-year high. The broader market also weakened, with the CoinDesk 20 index losing about 3% and 95 of the CoinDesk 100 cryptocurrencies ending the session lower.

The hotter inflation data led traders to increase their bets on a potential Fed rate hike at the Sept. 15-16 policy meeting.

Zcash suffered the steepest decline among major tokens, dropping roughly 12% to about $1,134. Even after the correction, Zcash remains up around 34% over the past week and nearly 145% over the last month.

Hyperliquid’s HYPE fell about 7% to just below $79, extending its weekly decline to roughly 10%. Dogecoin dropped approximately 6% to 8 cents, while XRP lost about 3% to $1.34 and is down nearly 7% over seven days. Solana fell more than 3% and traded below $100.

Ether declined nearly 2% to around $2,445, leaving its weekly loss below 3%. BNB slipped slightly more than 1% to roughly $710. Tron was the only major cryptocurrency to hold steady at about 34 cents, keeping its weekly gain above 3%.

Bitget analyst Lewis Huang identified $76,270 as a key technical support level for bitcoin. With BTC now trading below $77,000, that level is less than $800 away.

Oil markets added to inflation concerns, with Brent crude jumping more than 6% above $107 per barrel and West Texas Intermediate approaching $102. Rising energy prices could add further pressure to inflation as the Federal Reserve considers its next policy move.

Treasury yields also moved higher, with the 10-year yield nearing 5% and the two-year yield climbing above 4.5%. Gold slipped toward $4,330, while the dollar index strengthened near 99.

U.S. stocks also came under pressure. The S&P 500 fell to around 7,594 for a fourth consecutive decline. Asian markets followed lower, with Japan down nearly 2%, South Korea losing more than 3% and Hong Kong falling close to 1%.

Higher real yields can hurt cryptocurrencies by making government bonds more attractive than non-yielding assets such as bitcoin. They can also raise borrowing costs for leveraged traders, adding further pressure to risk assets.

U.S. spot bitcoin ETFs recorded $120 million in outflows on Wednesday, more than twice Tuesday’s amount. Ether, XRP and solana funds, meanwhile, attracted inflows during the same session.

The August CPI report is scheduled for release at 8:30 a.m. ET, with headline inflation expected at 3.4% year over year and core inflation forecast at 2.4%.

Interest-rate futures now indicate nearly a 70% probability of a Fed rate hike at the Sept. 15-16 meeting, up from roughly 50% two weeks earlier.

“Markets are already positioned for a more hawkish Fed and a likely rate increase,” said Joel Kruger, market strategist at LMAX Group.

Bitcoin has remained above $76,270 since its August rally began, making the level an important support zone if the current selling pressure continues.