Bitcoin fell back below $79,000 in Asian trading Thursday as growing expectations for a Federal Reserve rate hike weighed on the broader crypto market.
BTC slipped nearly 1% to just below $79,000 after briefly breaking above $80,000 for the first time since May. Despite the retreat, Bitcoin remained up about 14% over the past week.
Among major cryptocurrencies, XRP suffered the largest decline, dropping almost 3% to slightly above $1.41. XRP still maintained a 28% weekly gain, keeping it ahead of its large-cap peers. Hyperliquid’s HYPE fell more than 1% to below $81, while Tron declined less than 1% to just above $0.33.
Solana was an exception, rising almost 4% to above $101 and bringing its seven-day gain to roughly 19%. Ether advanced about 1% to just under $2,494, BNB gained nearly 1% to below $703, and Dogecoin remained close to $0.09.
The size of weekly gains has begun to shrink as last week’s sharp advance rolls out of the seven-day calculation. Bitcoin’s seven-day performance fell to 14% from 23%, while Ether’s weekly gain dropped to 11% from 29%.
Fed Bets Put Pressure on Crypto Rally
Interest-rate expectations have also become less favorable for risk assets. Short-term Treasury yields declined overnight as traders increased their expectations for a rate hike, reversing some of the lower-yield backdrop that helped Bitcoin climb from below $68,000 last week.
Federal Reserve Chair Kevin Warsh will deliver his first Jackson Hole keynote on Friday, just weeks before the central bank’s Sept. 15-16 policy meeting.
LMAX Group markets strategist Joel Kruger said Bitcoin’s daily technical indicators are showing overbought conditions. However, he cautioned that even extreme overbought readings do not necessarily lead to a significant correction.
Kruger identified the May peak around $82,820 as the next major level to watch. A decisive move above that resistance could strengthen the case for a return toward $100,000.
Stocks Rally as Crypto Cools
Equity markets showed stronger momentum. Nvidia gained almost 5% in extended trading after indicating that sales growth could remain strong through 2028. The move also lifted semiconductor companies including Marvell Technology and Sandisk.
MSCI’s Asia Pacific index rose about 0.5%, led by SK Hynix and Samsung Electronics, while South Korea’s Kospi advanced almost 2%.
Singapore-based QCP Capital took a more cautious view of Bitcoin’s latest advance. The firm said falling open interest points toward short covering rather than aggressive new long positioning, while spot ETF inflows appear to be supplying the more genuine source of demand.
QCP Capital questioned whether the rally has enough liquidity support to become a lasting trend or whether it remains vulnerable once short-covering activity fades.
