Higher oil prices and Treasury yields are weighing on risk appetite as traders assess the outlook for September.
Traders monitor shifting expectations around global interest rates and inflation
Photo Credit: Unsplash/Kanchanara
Bitcoin traded near Rs. 73.6 lakh on Wednesday as the cryptocurrency market came under pressure from rising geopolitical and macroeconomic risks after August's strong gains. Ethereum (ETH) was trading near Rs. 2.3 lakh, while major altcoins also remained subdued. According to market participants, higher oil prices and US Treasury yields are weighing on risk appetite. At the same time, stronger expectations of a September Federal Reserve rate hike have added to the pressure. According to CoinGecko data, Bitcoin traded near $77,500 (roughly Rs. 73.6 lakh), and Ethereum (ETH) traded near $2,400 (roughly Rs. 2.27 lakh).
The world's largest cryptocurrency was trading near the $77,000 (roughly Rs. 73.1 lakh) mark, as per the Gadgets 360 price tracker. Analysts said Bitcoin's 30-day correlation with gold has climbed to a record 0.8, while US spot Bitcoin ETFs recorded $3.5 billion (roughly Rs. 33,236 crore) in net inflows during August, their best monthly performance since September 2025.
Binance Coin (BNB) was priced around $688 (roughly Rs. 65,300), while Solana (SOL) traded near $100 (roughly Rs. 9,500). XRP hovered around $1.35 (roughly Rs. 128), while Dogecoin (DOGE) was trading close to $0.082 (roughly Rs. 7.8), indicating continued caution across major cryptocurrencies.
Pointing to Bitcoin's resilience despite rising macro risks, Prateek Gupta, Head of Business, Mudrex, said, “Bitcoin's 30-day correlation with gold has climbed to a record 0.8, a potentially bullish signal [...] Institutional demand also remains strong, with spot Bitcoin ETFs posting $3.5 billion (roughly Rs. 33,236 crore) in August net inflows, their best month since September 2025. Trading close to the support zone, Bitcoin needs to hold above the $76,000 (roughly Rs. 72.17 lakh) mark. A move below this level could retest the $73,000 (roughly Rs. 69.32 lakh) zone.”
Highlighting the impact of geopolitical and macroeconomic developments on Bitcoin, the CoinSwitch Markets Desk said, “Brent crude has climbed following the latest developments around the Strait of Hormuz, while the US 10-year Treasury yield has reached a 19-month high. With higher energy prices potentially keeping inflation elevated, expectations for near term Fed rate cuts have also come under pressure [...] September has historically been a weaker month for BTC, so a period of consolidation and elevated volatility would be consistent with the seasonal pattern.”
Assessing Bitcoin's latest decline and the role of institutional demand, Vikram Subburaj, CEO, Giottus.com, said, “Stronger expectations of a September Fed rate hike are also adding pressure. Markets now price roughly a 67 percent probability of a 25-basis-point hike. Attention now turns to Friday's US jobs report, which remains the next major trigger [...] Crypto-specific demand is still providing some support [...] Investors should avoid aggressive leverage and prefer staggered entries.”
Overall, analysts said higher oil prices, rising Treasury yields and increased expectations of a September Fed rate hike could keep risk appetite subdued, while Friday's US jobs report may provide the next major market catalyst. Bitcoin's ability to hold above $76,000 (roughly Rs. 72.17 lakh) will be important for maintaining its broader structure, while a sustained recovery above $80,000 (roughly Rs. 75.97 lakh) could signal renewed momentum.
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