A report by the Bureau of Labor Statistics indicated wholesale prices increased 0.9% in July, well above economists' forecasts of 0.2%, according to FactSet, marking a reversal in demand for risk assets like bitcoin as optimism the Federal Reserve will cut interest rates in September appeared to drop slightly.

Bitcoin hit a fresh record high close to $124,500 early on Thursday as the institutional adoption of crypto and U.S. government support for the sector continued to buoy demand. Bitcoin fell back a bit later in the day but remains up 112% over the past 12 months,

Bitcoin hit a record high on Thursday during early Asian trading, surpassing $124,000, driven by favourable US legislation and a rise in US equities. The cryptocurrency rose above its previous July record,