Bitcoin Hovers at Critical Support Amid Hawkish Fed Outlook
Bitcoin has reached a critical juncture after its recent surge, according to analysts. The cryptocurrency's price rose by 24% in August, its strongest monthly gain since November 2024.
The increase was largely driven by spot market purchases and a net inflow of $924.5 million into US spot Bitcoin ETFs during the week of August 24-28, according to Bitfinex analysts.
However, high oil prices and rising US Treasury bond yields have limited further gains in BTC, while expectations for an interest rate hike in September have increased following Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole.
The critical support level of $77,100 is currently holding, but analysts warn that the continuation of the rise depends on two key events: the US employment data to be released on September 4th and the inflation data to be released on September 11th.
While some analysts are cautious about the sustainability of the price above $80,000, Bitfinex notes that strong spot Bitcoin demand is supporting the market.