Bitcoin Slips Below $79K as XRP Leads Crypto Declines Amid Fed Hike Bets

Bitcoin slipped below $79,000 during Asian trading on Thursday as traders increased bets on a potential Federal Reserve rate hike, putting pressure on much of the crypto market.

Bitcoin was trading just under $79,000, down nearly 1% over 24 hours, after briefly moving above $80,000 for the first time since May. Despite the pullback, BTC remained up about 14% over seven days.

XRP posted the steepest decline among major cryptocurrencies, falling almost 3% to slightly above $1.41. Even after the drop, XRP maintained a 28% weekly gain, the strongest performance among the major tokens. Hyperliquid’s HYPE declined more than 1% to below $81, while Tron slipped less than 1% to just above $0.33.

Solana bucked the broader market trend, gaining nearly 4% to trade above $101 and extending its weekly advance to around 19%. Ether added roughly 1% to just below $2,494, while BNB gained almost 1% to under $703. Dogecoin remained near $0.09.

The broader weekly gains have weakened as the seven-day measurement moves beyond last week’s sharp rally. Bitcoin’s weekly increase has dropped to 14% from 23% a day earlier, while Ether’s gain has declined to 11% from 29%.

At the same time, interest-rate expectations are becoming less supportive of crypto prices. Short-term U.S. Treasury yields moved lower overnight as traders increased wagers on a possible rate increase, challenging the falling-yield environment that helped Bitcoin recover from below $68,000 last week.

Federal Reserve Chair Kevin Warsh is scheduled to deliver his first keynote address at Jackson Hole on Friday, ahead of the Fed’s Sept. 15-16 policy meeting.

Joel Kruger, a markets strategist at LMAX Group, said daily technical indicators have moved into overbought territory. However, he noted that extremely overbought conditions do not necessarily result in a major market reversal.

Kruger identified the May high near $82,820 as the next important confirmation level. A sustained break above that point could potentially put $100,000 back in view.

Equity markets moved in the opposite direction. Nvidia shares jumped nearly 5% in extended trading after the company signaled strong sales growth extending through 2028, lifting related chip stocks including Marvell Technology and Sandisk.

MSCI’s Asia Pacific index advanced around 0.5%, supported by gains in SK Hynix and Samsung Electronics, while South Korea’s Kospi climbed almost 2%.

Singapore-based QCP Capital offered a more cautious interpretation of the crypto rally, saying declining open interest suggests short covering has played a larger role than fresh speculative buying. The firm said spot Bitcoin ETF inflows appear to be providing the underlying genuine demand.

With liquidity support remaining limited, QCP Capital questioned whether Bitcoin’s rally is developing into a sustainable trend or simply benefiting from temporary momentum.