Bitcoin fell below $77,000 on Thursday as traders increased bets on a Federal Reserve rate hike following elevated U.S. producer inflation.

BTC dropped nearly 2% over 24 hours and more than 5% over the past week, extending the market’s pullback as Treasury yields climbed and crude oil surged.

The broader crypto market suffered an even deeper decline. The CoinDesk 20 fell roughly 3%, while 95 of the CoinDesk 100 assets ended the session lower.

The sell-off came as markets continued repricing the outlook for the Federal Reserve’s September 15-16 meeting.

Bitcoin Drops Below $77K as Rate Hike Bets Rise

Bitcoin’s decline followed the latest U.S. PPI report, which showed producer prices rising 5.4% year over year in August.

The inflation reading…