Bitcoin remained above $78,000 on Tuesday as most major cryptocurrencies retreated, while HYPE gained about 4%. Traders were also raising their expectations for a more hawkish Federal Reserve, putting broader risk assets under pressure.
BTC was hovering around $78,400 during Asian morning trading, little changed over the previous 24 hours. It traded within a range of roughly $77,200 to $79,200, according to CoinDesk data.
The cryptocurrency closed August with a 24% monthly gain, its best performance since November 2024. Strategy also resumed its Bitcoin accumulation last week, purchasing about $370 million in BTC after a two-month pause.
HYPE was the strongest performer among major tokens, rising about 4% to near $84. Ether slipped around 1% to just above $2,440, while Solana dropped about 1% to roughly $104. XRP held below $1.40 and BNB traded near $693.
Tron and Dogecoin were the biggest decliners, each losing approximately 2%. Tron traded around 33 cents, while Dogecoin was near 8 cents.
Asian Stocks Slide as Oil Rises
The weakness extended to Asian equities. Hong Kong’s Hang Seng fell about 1% to roughly 25,300, with Tencent and Meituan each down nearly 3%.
Japan’s Nikkei declined to around 66,185, while South Korea’s Kospi posted a modest gain as semiconductor shares rebounded.
Brent crude climbed almost 1% to around $91 per barrel after US military activity near the Strait of Hormuz over the weekend.
Markets Price Greater Fed Risk
Higher oil prices are adding to concerns over inflation and monetary policy. The US 10-year Treasury yield rose to about 4.78%, while traders assigned roughly 64% odds to a Federal Reserve rate hike at the Sept. 16 meeting.
That probability stood near 36% before Fed Chair Kevin Warsh spoke at Jackson Hole.
Gold also eased to around $4,435 an ounce after gaining 10% in August.
Yusuf Fakhro, a partner at ARP Digital, said Bitcoin’s ability to remain near $78,000 after its 23% rally is a more meaningful signal than the size of the advance itself.
He pointed to perpetual open interest falling to its lowest level since May and strong US spot Bitcoin ETF demand as evidence that the August rally was largely supported by spot buying rather than excessive leverage.
ETF Inflows Lose Steam
The ETF picture has since weakened. Wintermute recorded about $924 million of Bitcoin ETF inflows across nine straight positive sessions before a $202 million outflow on Friday ended the run.
Bitcoin has also repeatedly failed to break through $82,000.
Jasper De Maere, an OTC trader at Wintermute, said the market remains nervous but lacks a clear short-term direction.
Friday’s US payrolls report will be the final major employment indicator ahead of the September FOMC meeting. With markets already pricing in roughly 64% odds of a rate hike, a stronger jobs report could push Treasury yields higher and weigh on Bitcoin, potentially bringing the cryptocurrency back toward its $77,200 overnight low.
