Bitcoin Falls Below $79K as Zcash Leads Crypto Market Declines

Major cryptocurrencies traded lower on Tuesday, although most remained in positive territory for the week as markets began assigning about a 60% probability to a Federal Reserve rate hike next week.

Bitcoin was trading slightly below $78,800 on Tuesday, falling more than 1% over the past 24 hours while maintaining only a modest weekly gain, according to CoinDesk data.

The cryptocurrency has now gone roughly two weeks without managing a daily close above $80,000, yet it has continued to hold on to much of the rally that carried it higher through August.

Zcash suffered the steepest decline among major tokens, dropping nearly 5% to around $1,125. Despite Tuesday’s sell-off, Zcash remains up about 33% over the past seven days, giving it the strongest weekly performance among large-cap cryptocurrencies. Hyperliquid’s HYPE fell more than 3% to roughly $84, while Solana declined over 2% to just above $103, with both tokens giving back all of their weekly gains.

Ether declined about 1% to below $2,482, while XRP slipped to approximately $1.39. Tron was little changed near $0.33. Dogecoin and BNB were comparatively resilient, each losing only a fraction of a percent while retaining weekly gains of nearly 9% and more than 7%, respectively, making them the strongest performers over seven days behind Zcash.

Higher Treasury yields are adding pressure to risk assets. The 10-year Treasury yield remained close to 4.8% after August payroll data showed the U.S. economy added 162,000 jobs, far exceeding forecasts of roughly 53,000. Markets are now pricing in around a 60% probability that the Fed will raise its benchmark rate by 25 basis points at next week’s meeting, a scenario that would have seemed highly unlikely just a few months ago.

Meanwhile, the U.S. dollar index slipped below 99 for a second straight session as traders positioned for a possible Bank of Japan tightening, while gold climbed above $4,430.

“Crypto has absorbed these headwinds without suffering meaningful technical damage,” Joel Kruger, a market strategist at LMAX Group, said in an email.

Brent crude remained above $97 per barrel, its highest level in six weeks, following Iran’s statement that it was close to finalizing an agreement with Oman aimed at managing shipping through the Strait of Hormuz. The development came after a weekend marked by U.S. and Iranian strikes involving vessels and military targets. Elevated oil prices continue to reinforce inflationary pressures ahead of Friday’s consumer inflation data.

Asian stock markets opened the week in mixed fashion. South Korea’s Kospi surged almost 5% to its highest level since late July, while Japan’s Nikkei gained more than 2% as demand for AI-related memory-chip stocks strengthened. Hong Kong’s Hang Seng, however, declined nearly 1%.

Yusuf Fakhro, a partner at ARP Digital, said options-market sentiment has improved significantly, noting that “the persistent fear that defined the entire bear phase has drained out.” He also pointed to long-term holders becoming net buyers in late August for the first time during the current move.

Thursday’s producer price index and Friday’s consumer price index represent the final major inflation readings before the Federal Reserve’s upcoming meeting. A stronger-than-expected core inflation reading could push expectations for a rate hike toward 66% and put Bitcoin’s $77,000 support area at greater risk.

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