Bitcoin Holds Above $79,000 as Fed Odds Rise
The market is pricing in a higher Fed chance after strong U.S. jobs data, while spot bitcoin ETFs in the U.S. are still seeing inflows.
Key Takeaways
- Bitcoin stayed just above $79,300 on Monday morning in Asia and was down less than 1% over 24 hours.
- Zcash was the standout at nearly $1,183, after rising more than 3% on the day and 45% in a week.
- U.S. spot bitcoin ETFs pulled in about $770 million combined in the first four trading days of September.
Bitcoin stayed just above $79,300 (€68,200) on Monday morning in Asia. The coin fell less than 1% in 24 hours and was about 2% higher on the week. Meanwhile, Zcash stood out at nearly $1,183 (€1,020), after rising more than 3% on the day and 45% in a week. The rest of the crypto market moved much less sharply.
Bitcoin Stays Stable
The biggest crypto held up surprisingly well after U.S. labor market data once again shifted attention to the Federal Reserve. August payrolls came in at 162,000, well above the expected roughly 56,000, and that increased the odds of a rate hike at the Fed meeting on September 15 and 16. According to the provided data, market participants were pricing in about a 58% chance, up from just under 50% earlier.
Yields on U.S. government bonds also moved higher. The two-year yield hit a 52-week high of nearly 4.4%. Even so, the crypto market held up better than stocks, which felt the impact of the stronger rate expectations more clearly.
Zcash Draws Attention
Zcash was the clear standout. The coin broke above $1,000 (€860) on Friday for the first time since 2016 and kept that move going on Monday. Monero fell nearly 3%, but still held onto a 4% gain on the week.
Among the larger coins, the picture was calmer. BNB fell 2%, Dogecoin and Solana each lost about 1%, while Ether, XRP, Tron, and Hyperliquid stayed within 1% of flat. Over seven days, though, the market was greener, with BNB up nearly 9%, Dogecoin up more than 8%, and Hyperliquid up 7%.
Inflows Into Bitcoin ETFs
For European crypto watchers, the key point is that inflows into U.S. spot bitcoin ETFs have so far helped offset the higher rate expectations. Those funds pulled in about $770 million (€663 million) combined in the first four trading days of September. That suggests institutional demand is still playing an important role, even as the market prices in tighter monetary conditions.
