Bitcoin Holds Firm Near $79,000 Amid Rate Fears and Economic Uncertainty
Bitcoin has shown resilience around $79,000 despite fears of higher interest rates tempering its rally. The world's largest cryptocurrency was trading at roughly $78,950 on Tuesday, down about 1.4%, while Ethereum slipped by 1% to $2,483.
Solana lost more than 2% to around $103.60, with XRP also down a similar amount at approximately $1.39. The softer session follows a strong rebound through August, when Bitcoin gained about 24%, its best monthly performance since November 2024.
The stronger-than-expected US employment data and the prospect of interest rates remaining higher for longer have increased uncertainty around the Fed's September meeting. Higher rates typically weigh on speculative assets by increasing returns available from government bonds and tightening financial conditions.
US spot Bitcoin exchange-traded funds attracted around $770 million across the first four trading sessions of September, providing a potential source of support as macroeconomic conditions become less favorable. The broader cryptocurrency market has cooled after several smaller tokens recorded strong gains over the weekend.