Bitcoin Tumbles Below $79,000 as Rate Fears Return

Bitcoin retreated below $79,000 on Wednesday as investors reduced their exposure to risk assets ahead of US inflation data and next week's Federal Reserve interest-rate decision.

The world's largest cryptocurrency was trading at about $78,751, down 0.7%, after moving between an intraday low of $77,680 and a high of $79,432.

Ethereum was broadly steady at $2,494.75, while Solana slipped 0.4% to $103.71. XRP bucked the softer trend, gaining 1.4% to $1.42.

The pullback follows Bitcoin's brief move above $82,000 last week, when falling bond yields and expectations that the Federal Reserve could leave rates unchanged encouraged renewed demand for risk assets.

Stronger US employment indicators and rising oil prices have since complicated the interest-rate outlook, reducing the likelihood of near-term monetary easing and potentially forcing the Federal Reserve to maintain restrictive policy for longer.