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Bitcoin recovers toward $79,000 as Zcash records a $500 million ETF haul
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- DeepHorus
Bitcoin's price recovered toward $79,000 after a brief dip to $77,666 on Tuesday, showcasing the cryptocurrency's volatility as traders brace for key inflation data and the Federal Reserve's upcoming rate decision. The flagship digital asset ended the 24-hour period little changed but was up nearly 2% for the week, with market focus firmly on macroeconomic factors rather than crypto-specific news.
The primary driver of current market sentiment is the anticipation surrounding the Fed's Sept. 15-16 meeting, where traders are pricing in approximately a 60% chance of a rate hike. This outlook is influenced by elevated Treasury yields, with the 10-year note near 4.8%, as rising oil and gold prices maintain pressure. Brent crude is pushing toward $100 a barrel amid geopolitical tensions, while gold trades near $4,407 per ounce.
Amid this backdrop, Zcash emerged as a standout performer, surging over 43% for the week and trading past $1,180. This rally was fueled by the success of Grayscale's newly listed Zcash ETF (ZCSH), which crossed $500 million in assets under management just two weeks after its August 25 debut on NYSE Arca. The fund has accumulated over 550,000 ZEC, representing roughly 3% of the token's circulating supply.
The ETF's milestone reflects significant investor demand for privacy-focused digital assets in the current ecosystem. Analysts note that the market's behavior leading into the Fed meeting will be telling, with a key test being whether ETF inflows remain positive even as front-end Treasury yields stay high. A sustained positive inflow could signal a shift in how markets view the policy rate as a constraint.
Other major cryptocurrencies showed mixed performance. BNB gained nearly 2% to around $755, and Tron added over 1%. Ether and Solana remained relatively stable, while the total crypto market capitalization stood at approximately $2.8 trillion. The movements highlight a market increasingly reactive to traditional financial indicators.
Looking ahead, all eyes are on Thursday's Producer Price Index (PPI) and Friday's Consumer Price Index (CPI) data, which are the final inputs before the Federal Reserve's decision. Core CPI is expected to ease to 2.4%. Market analysts from firms like Wintermute and Bitfinex anticipate continued volatility as these macroeconomic reports will be crucial in shaping expectations for monetary policy and, consequently, risk assets like Bitcoin.
