Bitcoin Dips Below $79K While XRP Takes the Biggest Hit From Fed Fears

Bitcoin slipped under $79,000 during Asian hours Thursday as traders increased bets that the Federal Reserve could raise interest rates, weighing on sentiment across the broader crypto market.

BTC declined almost 1% to trade just below $79,000 after briefly breaking through $80,000 for the first time since May. Despite the retreat, Bitcoin was still up around 14% over the past seven days.

XRP suffered the sharpest decline among major tokens, falling nearly 3% to just above $1.41. The token continued to lead its large-cap peers on a weekly basis, with gains of roughly 28%. Hyperliquid’s HYPE dropped more than 1% to below $81, while Tron eased less than 1% to just above $0.33.

Solana moved higher against the broader market trend, gaining almost 4% to above $101 and lifting its weekly gain to approximately 19%. Ether rose around 1% to just below $2,494, while BNB added nearly 1% to below $703. Dogecoin was largely unchanged near $0.09.

Bitcoin’s seven-day gain has narrowed as last week’s rally gradually falls outside the rolling performance window. The weekly advance has declined to 14% from 23%, while Ether’s gain has slipped to 11% from 29%.

Higher Rate-Hike Odds Challenge Crypto

Changing expectations for Federal Reserve policy are adding pressure to the crypto market. Short-term Treasury yields fell overnight as traders raised their expectations for a rate increase, weakening the lower-yield backdrop that had helped Bitcoin rebound from below $68,000.

Fed Chair Kevin Warsh is scheduled to deliver his first Jackson Hole keynote on Friday, with the speech coming several weeks before the Sept. 15-16 policy meeting.

Joel Kruger, a markets strategist at LMAX Group, said Bitcoin’s daily technical indicators are showing overbought conditions. He cautioned, however, that even extreme overbought readings do not necessarily result in a major reversal.

Kruger identified $82,820, Bitcoin’s May high, as the next major resistance level. A sustained move above that mark could confirm additional strength and potentially create a path toward $100,000.

Nvidia-Led Stock Gains Contrast With Crypto Weakness

Equity markets were stronger. Nvidia shares jumped nearly 5% in extended trading after the company indicated that strong sales growth could continue through 2028. Marvell Technology and Sandisk also moved higher.

MSCI’s Asia Pacific index gained roughly 0.5%, supported by SK Hynix and Samsung Electronics, while South Korea’s Kospi rose nearly 2%.

Singapore-based QCP Capital took a cautious view of Bitcoin’s latest move, pointing to declining open interest as evidence that short covering may be contributing more to the rally than fresh buying.

The firm said spot Bitcoin ETF inflows remain a more reliable sign of underlying demand. With liquidity still constrained, QCP questioned whether Bitcoin’s advance can develop into a sustainable rally or remains dependent on short positions being unwound.