CoinDesk
Bitcoin eased to just under $79,000 in Asian morning hours Thursday, down almost 1% on the day, after briefly trading above $80,000 for the first time since May. XRP led losses among the majors with a nearly 3% slide to just above $1.41, even as it held a 28% weekly gain that still leads the cohort. Solana ran against the broader pullback, adding almost 4% to just above $101, while ether rose 1% to just under $2,494 and BNB added almost 1% to just under $703.
Why it matters
The shift in rate expectations is the real story under the price action. Shorter-dated Treasuries fell overnight as traders added to bets on a Fed rate increase, cutting against the lower-yield backdrop that lifted bitcoin from below $68,000 just a week ago. New Fed Chair Kevin Warsh delivers his first Jackson Hole keynote on Friday, three weeks before the September 15-16 rate decision. With weekly gains already compressing sharply and the macro tailwind fading, the catalysts that powered last week's surge are running out of runway.
Market impact
Joel Kruger, markets strategist at LMAX Group, said technical measures are in overbought territory on daily charts but that severely overbought conditions do not always unwind through a major reversal. He pegged the next confirmation level at bitcoin's May high near $82,820, with a break above opening a path back toward $100,000. Singapore-based QCP Capital pushed a more cautious read on its Telegram channel, noting that falling open interest points to short covering rather than fresh buying, while spot ETF inflows are supplying the genuine demand. "With liquidity support limited, is this rally becoming structural, or still running on borrowed time?", the firm concluded.
Frequently asked questions
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Why did Bitcoin drop below $79,000?
Bitcoin eased to just under $79,000 in Asian hours Thursday, down almost 1% on the day, after briefly trading above $80,000 for the first time since May. The slide came as traders added bets on a Fed rate hike into Friday's Jackson Hole keynote.
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Why does Jackson Hole matter this week?
Federal Reserve Chair Kevin Warsh delivers his first Jackson Hole keynote on Friday, three weeks before the September 15-16 rate decision. Traders are now pricing rate-hike bets, a sharp reversal from the lower-yield backdrop that powered last week's surge from below $68,000.
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Why is XRP leading losses today?
XRP fell hardest among the majors, down nearly 3% to just above $1.41. It still holds a 28% weekly gain that leads the cohort, but the broader pullback and compressing weekly returns are weighing on the name.
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Is the Bitcoin rally still structural?
QCP Capital argues falling open interest points to short covering rather than fresh buying, with spot ETF inflows supplying the only genuine demand. LMAX's Joel Kruger set the next confirmation level at bitcoin's May high near $82,820, with a break above opening the path back to $100,000.
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Why is Solana bucking the move?
Solana ran against the broader pullback, adding nearly 4% to just above $101 and 19% on the week, while every other major except BNB traded flat or lower over the past 24 hours.
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