Bitcoin fell 0.9% to $78,475.12 on Sept. 8 as Fed rate-hike fears, rising oil prices, and a hack on the Liquid Network layer-2 blockchain pressured the market. Ethereum and Solana also slipped, though Ethereum's decline was smaller after the Ethereum Foundation's quantum-readiness announcement and fresh buying from Bitmine Immersion Technologies.
Bitcoin drops as rate-hike fears mount
Bitcoin fell 0.9% to $78,475.12 in early evening trading on Sept. 8. Macro caution set the tone for the day, as fears of Federal Reserve rate hikes and rising oil prices pressured both equities and cryptocurrencies.
A hack on the Liquid Network, a layer-2 blockchain designed to improve processing and settlement speed, added further pressure on Bitcoin. Ethereum, meanwhile, fell just 0.1% to $2,484.36. Solana dropped 0.6% to $103.37.
Fed odds pass 60%
Investor attention is now firmly on the Fed's meeting later this month, because higher rates tend to weigh on riskier assets like crypto. The CME FedWatch tool, which tracks trader rate views, puts the possibility of a rate increase at over 60%. That is making investors nervous, but it is important to view these near-term shifts in the context of Bitcoin's potential in the coming decade or more.
Last week, Bitcoin reclaimed the $80,000 mark as it benefited from concerns about dollar weakness. Although it couldn't hold that level, the lead cryptocurrency is still up over 20% in the past month.
Ethereum holds up on quantum-readiness news
Unlike other major cryptocurrencies, Ethereum only edged slightly lower. This could be because the Ethereum Foundation announced yesterday that it would prioritize quantum readiness. Further buying from Bitmine Immersion Technologies also boosted the second-biggest crypto.
Bitcoin ETF picture stays murky
Spot Bitcoin ETFs saw positive inflows at the end of last week, with the iShares Bitcoin Trust ETF gaining over $117 million in net funds on Friday. U.S. stock markets were closed the day before this report, so a clear picture of crypto ETF activity won't emerge until the next trading session.
Source: The Motley Fool
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