Bitcoin Falls After Record High as Ethereum Drops. What’s Hitting Cryptos.

Bitcoin and other cryptocurrencies have a total market value of more than $4 trillion. (Dreamstime)

Bitcoin and other cryptocurrencies were mixed on Thursday following data showing hotter-than-expected inflation in wholesale prices.

Bitcoin hit a new high of above $124,000 overnight, but the largest cryptocurrency has now fallen back from its peak. Bitcoin’s price was up 0.6% over the past 24 hours early on Thursday, at around $120,991.

Bets on interest-rate cuts and the increasing presence of crypto-related companies have been boosting the sector. However, producer price index data on Thursday showed wholesale inflation picked up more than expected in July. That appeared to reduce confidence the Federal Reserve will lower borrowing costs after its Sept. 16-17 policy meeting.

Lower rates make risky assets such as stocks and digital assets more attractive relative to lower-yielding investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.

Several large altcoins were falling, with Ether down 2.3% to $4,577. Solana dropped 2.9% and XRP slumped 5.1%. Dogecoin , a memecoin, was down 7.7%.

Shares of cryptocurrency exchange Bullish were in focus Thursday after it soared 84% in its initial public offering Wednesday. The company, launched in 2021, is backed by prominent investors including Peter Thiel’s Founders Fund and hedge fund manager Louis Bacon.

Bullish was up 8.5% in premarket trading. But 180 Life Sciences —the crypto stock, also backed by Thiel, has purchased large amounts of Ether and intends to rebrand itself as ETHZilla— was down 28% in premarket trading.

Write to Adam Clark at adam.clark@barrons.com