Bitcoin briefly fell below $78,000 on Tuesday, reaching $77,603 before recovering to about $78,600, while its market capitalization stood at $1.58 trillion. The move followed a gradual decline after weekend trading above $79,000 and left bitcoin nearly flat during the first week of September, suggesting that bullish momentum and the debasement trade behind its August rally have weakened. The volatility triggered $264 million in cryptocurrency liquidations, including $79 million in bitcoin positions, roughly 90% of which were longs. Investors are now focused on August PPI (Producer Price Index) and CPI (Consumer Price Index) data from the U.S. Bureau of Labor Statistics, due Thursday and Friday, respectively. The figures follow a stronger-than-expected nonfarm payrolls report and could influence expectations for the Federal Reserve's upcoming policy meeting. An unexpected inflation increase or limited cooling could support a rate hike, raising yields on assets such as U.S. Treasuries and creating pressure on bitcoin and other digital assets.