Bitcoin Rebounds Above $79k as Crypto ETFs Offset Fed Hike Fears
Bitcoin (BTC) regained ground above $79k on Wednesday as renewed interest in crypto exchange-traded products provided some support. However, concerns over a potential U.S. Federal Reserve rate hike and surging oil prices kept risk appetite subdued.
The world's largest cryptocurrency last traded 0.8% higher at $79,491.2 by 05:34 ET (09:34 GMT). It had fallen to lows near $77,600 on Tuesday after losing some of the gains it made above $82,000 last week.
The broader crypto market has been watching a sharp rally in Zcash, with assets in Grayscale's ZEC ETF topping $500 million roughly two weeks after its Aug. 25 debut on NYSE Arca.
However, macroeconomic risks weighed on the market, limiting Bitcoin's gains. Traders have sharply increased bets that the Fed could raise interest rates at its Sept. 15-16 meeting due to stronger-than-expected U.S. employment data and renewed inflation concerns.