A stronger-than-anticipated inflation reading reminded investors that Bitcoin remains a highly volatile asset just hours after the digital currency soared to another record high.

The original cryptocurrency fell more than 4% in the minutes after a government report showed US wholesale inflation accelerated in July by the most in three years.

That sent stocks lower and tempered expectations for a reduction in interest rates, sending Bitcoin down from a high of $124,515 set late Wednesday in New York. The previous record was reached in July.

Helping to fuel the shift in sentiment were comments from Treasury Secretary Scott Bessent on Fox Business that the US would not be buying additional Bitcoin for President Donald Trump’s crypto strategic reserve. Bitcoin was trading at about $118,100

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