Bitcoin Slides Toward $77,300 as Hot Inflation Data and ETF Outflows Weigh on Crypto Markets

Bitcoin fell toward $77,300 on Sept. 12 as hotter-than-expected inflation metrics pushed interest rate expectations higher ahead of the upcoming Federal Open Market Committee meeting, according to market data first reported by Yahoo Finance.

The price drop reflects a decline from $79,155 on Sept. 9 and a 5.6% reduction from an intraday peak of $82,000 recorded on Sept. 4. The digital asset traded near $77,400 following the release of August consumer price data on Sept. 11, which altered interest rate forecasts across broader financial markets.

Core consumer price index data, which excludes food and energy, increased 0.3% month-over-month in August, topping analyst estimates of 0.2%. Following the release, prediction market Polymarket saw odds for a Sept. 16 Federal Reserve interest rate increase rise to 83%. The Fed's target rate upper bound currently stands at 3.75%, where it has remained since December 2025.

Energy prices contributed significantly to headline inflation pressure after Brent crude oil crossed $100 per barrel on Sept. 9. That spike followed U.S. military strikes targeting Iran-linked oil tankers near the Strait of Hormuz hours earlier. Higher oil prices subsequently filtered into transportation and manufacturing costs, impacting broader economic data.

Institutional demand through U.S. spot Bitcoin exchange-traded funds has also pulled back. Spot Bitcoin ETFs registered $13.29 million in net redemptions on Sept. 11, marking a fourth consecutive day of outflows. The selling streak ended a prior period of sustained demand, which had seen $986.9 million flow into spot Bitcoin ETFs during the week ending Sept. 4.

Selling pressure has been further amplified by existing token holders. On-chain data from CryptoQuant indicates that long-term holders—defined as wallet addresses keeping coins for more than 155 days—have sold 539,000 Bitcoin within the $77,000 to $80,000 price range this year, creating a heavy supply barrier for new buyers to absorb.

Equity markets have shown parallel volatility amid shifting monetary policy expectations. The Cboe Volatility Index (VIX) closed at 17.84 on Sept. 10, representing a 24.6% increase over the course of a week as investors adjusted to elevated treasury yields, which increase the opportunity cost of holding non-yielding digital assets.

Traders are watching critical support levels between $76,500 and $77,000. Market analysts note that a sustained close below $76,500 could open a path toward the $72,000 to $74,000 band, representing a potential 7% decline from current trading levels. With implied volatility near 40 into the FOMC meeting, options markets are pricing in heightened price swings over the next 30 days depending on whether Fed messaging leans hawkish or dovish.