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.

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%.

Some crypto stocks slid in morning trading. 180 Life Sciences fell 29%; BIT Mining fell 9%; Hyperion DeFi fell 8%; Canaan and ATIF Holdings fell 7%; Sequans Communications, Tron, Strategy, and BTCS fell 4%; MARA Holdings, CleanSpark, and GameSquare fell 3%; Bit Digital, SharpLink Gaming, and Circle fell 2%; Coinbase fell 1%.

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.