Bitcoin Struggles to Sustain $80,000 Amid Volatility
As of Tuesday, Bitcoin slipped below $78,800, recording over a 1% decline on the day while still maintaining a slight gain for the week. After hitting highs in August, Bitcoin has now spent two consecutive weeks unable to reclaim the $80,000 level.
Zcash Leads Losses Among Major Cryptos
Zcash experienced the steepest fall, dropping nearly 5% to around $1,125. Despite this daily setback, it retains a strong weekly gain of approximately 33%, marking it as the top performer among large-cap cryptocurrencies this week. Meanwhile, Hyperliquid’s token HYPE fell over 3% to near $84, and Solana declined more than 2%, hovering just above $103. Both lost all gains amassed in the prior week.
Ethereum slid about 1% to below $2,482. Ripple’s XRP retreated to $1.39, while Tron remained stable around 33 cents. Dogecoin and Binance Coin showed minor losses under 1%, yet still posted weekly increases close to 9% and 7%, respectively.
US Treasury Yields Add Pressure Amid Strong Jobs Data
The 10-year US Treasury yield held near 4.8%, bolstered by August’s robust payroll additions of 162,000 compared to expectations of just 53,000. This bolstered market bets on a 25-basis-point Federal Reserve rate hike at next week’s meeting, with probabilities hovering near 60%. This marks a significant shift from the start of the year when such expectations were far less pronounced.
The US Dollar Index declined below 99 for the second straight session. Anticipation of tighter Bank of Japan policies has increased demand for the Japanese yen. Meanwhile, gold prices surpassed $1,430 per ounce.
Crude Prices and Asia-Pacific Market Moves
Brent crude maintained above $97 a barrel, reaching a six-week high. Progress toward an Iran-Oman agreement to oversee shipping in the Strait of Hormuz eased recent regional maritime and military tensions. Elevated oil prices add uncertainty ahead of forthcoming US inflation statistics.
In Asia-Pacific markets, Monday’s trading showed divergence: South Korea’s KOSPI surged nearly 5% to a late July high, Japan’s Nikkei climbed over 2% supported by rising demand for AI-related chips, while Hong Kong’s Hang Seng index slipped close to 1%.
Options Activity and Incoming Inflation Data
Yusuf Fakhro, partner at ARP Digital, noted, “Long-term investors shifted to net buyers toward end-August, signaling a reduction in bearish sentiment.”
This week’s release of August’s Producer Price Index and Consumer Price Index will be critical data points ahead of the Fed’s rate decision. Should core inflation remain elevated, market odds for a rate hike could rise to about two-thirds, potentially testing Bitcoin’s support around $77,000.
Overall, the crypto market continues to navigate fluctuations amid evolving Fed policy expectations and economic data, with upcoming inflation reports likely to guide short-term price trajectories.