Bitcoin held steady above $78,000 on Tuesday after Strategy disclosed its first Bitcoin purchase in two months, even as traders weighed hawkish Federal Reserve comments and renewed U.S.-Iran military tensions. Broader crypto prices logged only small moves following August's stellar gains.
Bitcoin slipped 0.3% to $78,387.3 by 10:17 ET, staying close to its recent peaks after adding nearly 25% in August on hopes of further progress in U.S. regulation and demand for alternative assets amid turmoil in the bond market. Gains stayed capped, however, as caution over higher interest rates and continued U.S.-Iran tensions weighed on crypto markets.
Rate jitters, Iran tensions and weak jobs data keep gains in check
Hawkish comments from Federal Reserve Chair Kevin Warsh pushed markets to ratchet up expectations for a September rate hike. Warsh reiterated the Fed's commitment to its 2% annual inflation target, spurring bets the central bank will tighten further, and recent bond market turmoil added to those expectations.
U.S. job openings also fell short of expectations in July, with the Labor Department reporting 7.271 million openings against a forecast of 7.330 million, while June's reading was revised down to 7.182 million. On the geopolitical front, the U.S. and Iran carried out military strikes for the first time in a month, sending oil prices soaring as shipping through the Strait of Hormuz stayed at a fraction of pre-war levels. Higher rates bode poorly for Bitcoin, since they diminish the appeal of speculative assets relative to debt.
Strategy buys Bitcoin for first time in two months
Strategy Inc disclosed on Monday that it purchased 4,603 coins for about $368.7 million last week, its first Bitcoin purchase since late June. The company funded the buy through the sale of $602.8 million in common stock, directing the remainder toward buying back its STRC preferred shares. The purchase brings Strategy's total holdings to 845,050 Bitcoin.
Altcoins stay rangebound after stellar August gains
Broader crypto prices logged small moves Tuesday following August's stellar gains. Ether slipped 0.7% to $2,450.01. XRP added 0.2%. Solana fell 1.2%. BNB shed 0.5%. Cardano rose 1.2%. Dogecoin slipped 0.3%.
Source: Investing.com
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