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Bitcoin steady above $78,000, HYPE leads as majors slip on hawkish Fed bets
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- DeepHorus
Bitcoin held steady above $78,400 on Tuesday, showing resilience as major cryptocurrencies and Asian equity markets slipped due to hawkish Federal Reserve expectations. The cryptocurrency's price fluctuated between approximately $77,200 and $79,200 over the past 24 hours, according to CoinDesk data, leaving it nearly flat for the week after a remarkable 24% surge in August.
August marked Bitcoin's strongest monthly performance since November 2024, driven by renewed institutional buying. Strategy, a prominent Bitcoin investor, resumed purchases last week with $370 million worth of Bitcoin, its first acquisitions in about two months. Simultaneously, U.S. spot Bitcoin ETFs recorded their strongest week of demand since October 2025, attracting fresh capital into the market.
The broader crypto market faced selling pressure, with Ether shedding about 1% to just above $2,440 and Solana dipping near $104. Tron and Dogecoin experienced more significant declines, both falling roughly 2%. In contrast, HYPE stood out as the only major gainer, climbing approximately 4% to near $84.
The market downturn was influenced by rising oil prices and bond yields. Brent crude approached $91 a barrel following U.S. military activity near the Strait of Hormuz, pushing the 10-year U.S. Treasury yield up to 4.78%. This development increased traders' expectations for a Federal Reserve rate hike at the September 16 meeting to approximately 64%, up from 36% before Chair Kevin Warsh's Jackson Hole address.
Analysts noted the significance of Bitcoin maintaining its price level after the August rally. Yusuf Fakhro of ARP Digital highlighted that the surge was driven by spot demand, with perpetual open interest at its lowest since May, indicating no crowded leveraged positions remained to unwind. However, market sentiment appears cautious, with Wintermute's Jasper De Maere describing it as lacking short-term directional conviction.
All eyes are now on Friday's August jobs report, the final major labor data before the September FOMC meeting. A strong employment reading could further elevate bond yields and pressure Bitcoin back toward its recent low near $77,200. The cryptocurrency market remains in a wait-and-see mode, balancing strong spot demand against macroeconomic uncertainties.
