Bitcoin Faces $568 Million Liquidation Amid Oil Price Surge and Bond Yield Spike

On September 10, Bitcoin's price dipped below $77,000 as oil prices surged past $100 a barrel, coinciding with a global bond selloff that heightened expectations for a Federal Reserve interest rate hike. The cryptocurrency reached an intraday low of $76,676.07, contributing to a total liquidation of about $568 million across the crypto market, according to CoinGlass data.

The spike in oil prices, particularly West Texas Intermediate crude, which rose over 4% to exceed $100 for the first time since May, has raised concerns about inflation. This energy shock comes as U.S. producer prices increased by 0.4% in August, leading traders to anticipate a 76% chance of a quarter-point rate increase by the Fed in its upcoming meeting.

As the bond market reacted, the 10-year Treasury yield approached 5%, marking a significant rise as investors adjusted to the new economic landscape. The 30-year Treasury yield reached 5.35%, the highest in 19 years. This environment has caused a ripple effect in the crypto derivatives market, where over 161,900 traders faced liquidations, with Bitcoin longs accounting for approximately $138 million of the total losses.

Data from CryptoQuant indicated that the selling pressure intensified following macroeconomic releases, with Bitcoin's taker sell volume on Binance spiking to over $1.4 billion within an hour. The market is now testing a critical support cluster between $76,000 and $82,000, which, if breached, could expose Bitcoin to further declines towards a deeper accumulation floor around $62,000 to $65,000.

As traders await the upcoming consumer price index report, which is expected to show a 0.4% rise in headline consumer prices, the implications of the recent energy surge on inflation data remain a concern. A stronger-than-expected CPI report could reinforce the case for a Fed rate hike, further impacting Bitcoin's price and market dynamics.

Latest Economic Insights

US consumer prices increased by 0.4% in August, following a 0.1% rise in July, with annual inflation holding steady at 3.4%.

The gasoline index surged by 3.9%, contributing to over one-third of the overall monthly CPI increase.

Energy prices rose by 2.1%, while shelter costs increased by 0.3% and food prices saw a slight rise of 0.1%.

Core CPI, which excludes food and energy, increased by 0.3% in August, up from a 0.2% rise in July.

Core inflation for the year ending in August rose by 2.4%, a slight decrease from the 2.5% increase noted through July.

Bitcoin experienced a drop to approximately $76,000 following the CPI release but has since recovered to above $78,000, marking a 1.5% gain in the last 24 hours.

New Economic Insights

Consumer prices in the US rose 3.4% year-over-year in August, matching July’s reading and aligning with economists’ forecasts.

The Bureau of Labor Statistics reported a 0.4% increase in the Consumer Price Index (CPI) for August, marking the steepest monthly jump in three months, primarily driven by a 3.9% surge in gasoline prices.

Core CPI rose 0.3% month-over-month, with its annual rate slightly decreasing to 2.4% from 2.5% in July.

The Producer Price Index (PPI) indicated a 0.4% rise in wholesale prices month-over-month for August, with a year-over-year increase of 5.4%.

Markets are anticipating a 70% probability of a 25-basis-point rate hike at the upcoming Federal Reserve meeting on September 15-16.

Inflation has consistently exceeded the Fed’s 2% target for over five years, influenced by high shelter costs and energy market disruptions.

New Facts

• US spot Bitcoin ETFs experienced approximately $450M in net outflows over three trading days from September 8-10, 2023.
• On September 10 alone, there were $282.6M in redemptions, marking the largest single-day outflow during this period.
• ARKB, the ARK 21Shares Bitcoin ETF, accounted for $164.3M in outflows on September 10, making it the largest contributor to that day's losses.
• Since their launch in January 2024, cumulative net inflows for Bitcoin ETFs are around $55.17B, with total assets under management near $97.5B.
• For 2026, Bitcoin ETFs have seen net outflows of roughly $1.07B, indicating more money has exited than entered since January.
• The recent outflow pattern indicates a rapid shift in sentiment, going from nearly $1B in weekly inflows to $450M in weekly outflows within a single week.