Bitcoin slipped below $79,000 in Asian morning hours Thursday, down nearly 1% on the day after briefly trading above $80,000 for the first time since May. The pullback came as traders added to bets on a Federal Reserve interest-rate increase, pressuring risk assets broadly and cutting against the lower-yield backdrop that lifted bitcoin from below $68,000 last week.

Market Context

Every major token except Solana and BNB was flat or lower over 24 hours. XRP fell hardest among the majors, down almost 3% to just above $1.41, though it still led the group with a 28% weekly gain. Hyperliquid's HYPE slipped over 1% to just under $81, while Tron dipped under 1% to just above 33 cents. Meanwhile, Solana ran against the broader move, up nearly 4% to just above $101 and up 19% on the week.

Analysis

Rising expectations for an interest-rate increase are challenging the crypto rally that has carried bitcoin to a 14% weekly gain, down from 23% a day earlier as the rolling window moves past last week's surge. Ether's seven-day gain has similarly narrowed to 11% from 29%. Federal Reserve Chair Kevin Warsh is set to deliver his first Jackson Hole keynote as chair on Friday, three weeks before the Sept. 15-16 rate decision.

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 put the next confirmation level at bitcoin's May high near $82,820, a break above which would open the way back toward $100,000.

Singapore-based QCP Capital noted in a Telegram broadcast that falling open interest points to short covering rather than fresh buying, with spot ETF inflows supplying the genuine demand. "With liquidity support limited, is this rally becoming structural—or still running on borrowed time?" the firm concluded.

Key Numbers

- Bitcoin: down nearly 1% to just under $79,000; weekly gain narrowed to 14% from 23%

- XRP: down almost 3% to just above $1.41; up 28% over the week

- Solana: up nearly 4% to just above $101; up 19% on the week

- Ether: added 1% to just under $2,494

- BNB: up almost 1% to just under $703

- Dogecoin: held at just under 9 cents

- May high target for bitcoin: near $82,820

What to Watch

Federal Reserve Chair Kevin Warsh's Jackson Hole keynote on Friday will be closely watched for signals on the rate path ahead of the Sept. 15-16 FOMC meeting. Traders are increasingly pricing in a potential rate increase, with shorter-dated Treasuries falling overnight. The key technical level to watch remains bitcoin's May high near $82,820 — a break above could signal further upside toward $100,000.