Bitcoin Retreats from $80,000 High Amid September Rate Hike Fears

Bitcoin's price retreated from its recent high of $80,000 after a hawkish speech from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. The estimated probability of a September rate hike rose to between 56 and 60 per cent, pressuring risk assets broadly.

The pullback came after Bitcoin surged by $15,000 in under two days, posting a 22.6 per cent weekly gain, its largest in three years and the biggest single-week increase in US dollar terms on record.

Treasury buybacks and liquidity trades may have triggered a short squeeze, with a US Treasury announcement doubling bond buybacks to $4 billion per operation. Bitcoin whales accumulated over 39,154 BTC ($3 billion) in a single week, while wallets holding more than 100 BTC added approximately 43,000 BTC over the preceding 60 days.

Ethereum added the equivalent of Solana's entire market capitalisation during the prior week's rally, surging 30 per cent to $2,480. XRP had gained 47.5 per cent during the same upswing, while Solana rose 29.1 per cent and Hyperliquid climbed 31.4 per cent.