Bitcoin Slides to $77,500 as Rate Hike Odds Rise
Bitcoin ended the week at $77,500, down from a recent high of $82,000, as futures markets priced in a greater than 70% chance of a 25-basis-point Federal Reserve rate hike on September 16.
Bitcoin closed the trading week at $77,500. The price fell from a recent peak of $82,000. Futures markets now assign a greater than 70% probability to a 25-basis-point interest rate increase. The decision is expected at the Federal Reserve meeting on September 16. This probability rose after a hot U.S. inflation report for August. Crude oil prices also hovered near $100 per barrel. This is the first time since May that oil has traded at this level. Higher interest rates typically reduce demand for risk assets like cryptocurrency.
Ethereum traded around $2,500 during the same period. Despite this weekly decline, crypto prices remain significantly higher than one month ago. Bitcoin was trading below $65,000 during that earlier period. The asset previously reached an all-time high of $126,198.07 on October 6 of last year. Market sentiment reflects a tension between long-term growth and short-term macroeconomic pressure. Investors are adjusting their positions in response to the changing interest rate outlook reported by GN markets/crypto (en-US).
Corporate Strategies Adjust to Market Conditions
Strategy did not purchase or sell Bitcoin during the week. The company kept its holdings unchanged at 845,050 BTC. Instead, Strategy repurchased 1.81 million shares of its preferred stock. This transaction totaled $176.3 million. The firm also raised the allowable repurchase amount for preferred stock to $2 billion. This cap was previously set at $1 billion. The company focused on managing its capital structure rather than accumulating more digital assets.
Nasdaq invested $100 million in Payward, the parent company of Kraken. This investment was part of a funding round that valued Payward at $21 billion. Nasdaq is developing tokenized market infrastructure as part of this move. The exchange is also preparing for around-the-clock trading capabilities. This financial injection supports Kraken's expansion and operational growth within the digital asset sector.
Regulatory and Technical Developments Expand
U.S. Bancorp is preparing to launch its own stablecoin named USBDC. The bank completed a live cross-border payment using this asset. USBDC is pegged one-for-one to the U.S. dollar. The fifth-largest lender in America is weighing broader uses for this token. It may integrate the stablecoin across its wider payments business. This move aligns with the growing adoption of fiat-backed stablecoins by major financial institutions.
The Ethereum Foundation set a goal to make its blockchain resistant to quantum computer attacks by 2029. Analysts predict that powerful quantum computers could break current cryptography by 2030. The foundation stated it takes this threat seriously. It has locked in 2029 as the target year for implementation. This technical upgrade aims to secure the network against future computational threats. Bybit also announced plans to launch a super app in Europe. The app will offer bank accounts and trading for stocks and crypto.
