Bitcoin Bounces Above $79k as Zcash ETF Inflows Counter Fed and Oil Pressures
Bitcoin's price rebounded above $79,000 on Wednesday after a brief dip to near $77,600 in the previous session. The cryptocurrency gained 1% and was last trading at $79,111.2 by 02:15 ET (06:15 GMT). The rally was driven in part by renewed interest in crypto exchange-traded products, particularly Grayscale's Zcash fund, which has seen assets top $500 million roughly two weeks after its August 25 debut on NYSE Arca.
The fund offers spot exposure to Zcash, expanding institutional access to the token. However, Bitcoin's gains remained limited as macroeconomic risks weighed on the market. The U.S. Federal Reserve's potential interest rate hike and surging oil prices complicated the outlook for central banks and raised concerns about inflation.
Oil prices climbed to $99.68 a barrel on Wednesday, its highest level since late June, as escalating Middle East tensions raised fears of a wider disruption to energy supplies. U.S. producer prices are due Thursday, followed by consumer price data on Friday, making the inflation readings key for expectations around the Fed's next move.