Bitcoin falls to $78,000!
The world’s largest cryptocurrency continued to decline after surpassing $82,000 last week.
Bitcoin fell 1.6% to $78,406.5 on Tuesday, continuing its retreat from last week’s three-month high. Stronger-than-expected U.S. employment data increased expectations that the Federal Reserve could raise interest rates at its September meeting. The U.S. economy added 162,000 jobs in August, while the unemployment rate remained at 4.1%. According to CME FedWatch, the probability of a 25-basis-point rate hike rose to 60%. Higher interest rates put pressure on riskier assets such as Bitcoin and increase the attractiveness of yield-generating investments. Meanwhile, rising oil prices have also heightened inflation concerns. Brent crude climbed to $97.50 per barrel. Tensions between the U.S. and Iran, along with shipping risks in the Strait of Hormuz, have increased concerns in energy markets. Investors will monitor U.S. producer and consumer price data this week. Altcoins also declined: Ethereum fell 1.3%, XRP 1.8%, Solana 2.3%, Cardano 1.1%, and Dogecoin 0.7%. Despite the decline, Bitcoin gained around 25% in August and remains well above previous lows. Spot Bitcoin ETFs in the U.S. attracted approximately $1 billion last week.