Bitcoin Holds Near $78,000 as Stronger Dollar Pressures Crypto Market
Summary
- Bitcoin was trading around the $78,000 level after a modest pullback, while still holding a gain of about 1% over the past week.
- Dollar strength and firmer expectations for interest-rate hikes pushed US Treasury yields higher, weighing on the broader crypto market and leading to institutional outflows from spot Bitcoin ETFs.
- In the altcoin market, Solana (SOL) and Dogecoin (DOGE) fell about 2%, marking relatively steep declines, while investors focused on monthly fund flows for spot Bitcoin ETFs.
Forecast Trend Report by Period
Bitcoin hovered near $78,000 as dollar strength and shifting US interest-rate expectations weighed on the crypto market.
BlockBeats reported on Aug. 31 that Bitcoin traded around $78,000, down 0.04% over the past 24 hours. It remained up about 1% over the past week. The stronger dollar was seen as a key source of pressure on crypto prices.
In the altcoin market, Solana and Dogecoin each fell about 2%, marking relatively steep declines. Hyperliquid and XRP also weakened, while Ether, BNB, Zcash and Tron were mostly little changed.
US Treasury yields rose and the dollar strengthened after a Jackson Hole speech by Kevin Warsh boosted market expectations for Federal Reserve rate hikes. The shift in rate expectations has also recently led to institutional outflows from spot Bitcoin exchange-traded funds.
Meanwhile, the yen weakened beyond 160 per dollar. Market participants say the likelihood of intervention by Japanese authorities would rise if the currency weakens toward 161, with a stronger response possible in the 162 to 163 range.
With Aug. 31 marking the final trading day of August, the market is also watching monthly fund flows for spot Bitcoin ETFs.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.