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Source: Newsmaker.id
Bitcoin weakened during Monday's trading (August 31), pressured by a combination of expectations for a Federal Reserve interest rate hike and escalating military tensions between the United States and Iran. Bitcoin traded in the US$77,900–US$78,000 range, having moved between approximately US$77,056 and US$79,373 over the past 24 hours.
Pressure on crypto assets mounted after Fed official Kevin Warsh struck a hawkish tone at Jackson Hole. Warsh reiterated the importance of bringing inflation toward the 2% target, causing the market to raise the probability of a September rate hike from around 35% before the speech to approximately 64% afterward. A higher interest rate and yield environment tends to be less favorable for Bitcoin, as investors have access to lower-risk, interest-bearing asset alternatives.
Risk-off sentiment intensified following renewed exchanges of fire between the United States and Iran. Oil prices surged more than 3%, heightening concerns that energy-driven inflation could rise again. If the rise in oil prices persists, the market may increasingly consider the possibility of the Fed maintaining a tight monetary policy for longer.
Despite the recent pullback, Bitcoin's performance throughout August remained very strong, posting a gain of around 24%. That rally had previously been supported by a drop in Treasury yields—following increased US government intervention in the bond market—which improved liquidity and appetite for risk assets.
Pressure was also evident among altcoins. Ethereum (ETH) traded around US$2,444, XRP at US$1.37, Solana (SOL) at US$103, Cardano (ADA) at US$0.196, and BNB around US$688. Solana fell about 3.1% over 24 hours, XRP weakened 1.4%, Cardano dropped 2.2%, and BNB corrected by approximately 1%.
More significant pressure was observed among memecoins. Dogecoin (DOGE) hovered around US$0.083, while Official Trump (TRUMP) traded at approximately US$2.39. DOGE fell approximately 3% over the past 24 hours, while TRUMP slumped nearly 7%, indicating that investors are continuing to reduce their exposure to more speculative assets.
Amidst this correction, institutional support for Bitcoin remains intact. Strategy purchased another 4,603 BTC—valued at US$369.7 million—between August 24 and 30 at an average price of US$80,318 per Bitcoin. This purchase marks the company's first accumulation in roughly two months.
Strategy now holds 845,050 Bitcoin, acquired at a total cost of approximately US$63.73 billion and an average price of US$75,412 per BTC. The latest purchase was funded through the sale of MSTR shares, which generated around US$602.8 million, demonstrating that Strategy continues to maintain Bitcoin as a core component of its corporate treasury strategy.
Market focus is now shifting to a series of US labor market data releases, particularly the ADP report and Nonfarm Payrolls (NFP). Weak data could dampen interest rate hike expectations and serve as a catalyst for a Bitcoin recovery. Conversely, a solid labor report—combined with inflationary pressure from rising oil prices—could reinforce the case for rate hikes and keep the crypto market under pressure.
Newsmaker Analysis: Fundamentally, Bitcoin remains caught in a tug-of-war between institutional interest and an unfavorable macroeconomic environment. As long as expectations for rate hikes, Treasury yields, and the US dollar remain elevated, Bitcoin's upside potential may be limited in the short term. However, Strategy's renewed buying and the strong gains seen throughout August indicate that structural demand has not vanished. This week's US labor data could determine whether Bitcoin's correction continues or if the market will retest higher levels. (arl)
Source: Newsmaker.id