Bitcoin’s Rally Faces Fresh Test as Rate Fears Grow: Bitfinex

Bitcoin’s August rally is facing a tougher test as fresh ETF demand meets growing expectations for tighter U.S. monetary policy.

The cryptocurrency is holding above $77,100, but its next move may hinge on whether fresh liquidity can offset rising rate risks, according to Bitfinex Alpha. This tension was evident in Bitcoin’s recent price action.

Bitcoin closed above $80,000 on August 27 for the first time since May, ending at $80,256 after briefly reaching $81,500. It later fell to $76,857 after Federal Reserve Chair Kevin Warsh’s Jackson Hole remarks pushed markets to reassess the outlook for U.S. rates.

Bitcoin Holds Up Despite Rate Fears The pullback came as markets raised the implied probability of a September rate increase from the mid-30% range to about 60%.