Crypto Markets Plunge as Rate Hike Fears and Crude Oil Surge

Cryptocurrency markets took a hit as rate hike expectations from the Federal Reserve rose following hawkish comments from Fed Chair. The escalation of geopolitical tensions in the Middle East and surging crude oil prices further contributed to bearish sentiment. Bitcoin, the largest cryptocurrency by market capitalization, dipped 0.48% overnight to $78,333.78.

However, reports of Bitcoin purchases by Strategy Inc. mitigated losses somewhat. The company acquired 4,603 Bitcoins worth $369.7 million during August 24-30, lifting its total holdings to 845,050. At an average cost of $75,412 per coin, the acquisition is a significant boost for the company.

Despite this, overall cryptocurrency market capitalization slipped 0.54% overnight to $2.64 trillion. The decrease was accompanied by a nearly 98% increase in trading volumes. Bitcoin's dominance of the crypto market stands at 60.10%, while Ethereum accounts for 11.35% and other cryptocurrencies make up 28.55%. The Crypto Fear & Greed Index remains steady at 75, indicating a mix of fear and greed.