Bitcoin Holds Above $78,000 Despite Oil Spike and Rising Rate Hike Bets

Bitcoin traded around $78,000 on Tuesday, holding on to most of its August gains despite a jump in oil prices and rising expectations that the Federal Reserve could hike interest rates this month. The cryptocurrency gained roughly 25% in August, marking its best August performance since 2017 and its strongest month overall since November 2024. This resilience is notable given the increasingly difficult cross-asset backdrop, with higher bond yields, a firmer dollar, and renewed geopolitical stress all creating headwinds for risk assets. The renewed escalation between the U.S. and Iran has pushed Brent crude above $90 per barrel, while Fed Chair Warsh's hawkish remarks have raised expectations for a September rate hike. LMAX Group Market Strategist Joel Kruger noted that the combination of higher oil prices and Warsh's hawkish message is limiting bitcoin's immediate upside, though buyers have continued to step in on dips. Wintermute OTC trader Jasper De Maere observed that bitcoin managed to absorb the shift in rate expectations, a selloff in chip stocks, and month-end trading without giving back its breakout. Under-allocated investors are providing price support, with $75,000 and $82,000 identified as two key levels heading into the FOMC meeting in mid-September. Traders are now eyeing Friday's U.S. nonfarm payrolls report, with economists expecting modest job growth of 55,000 in August.
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