Oil at $100, Fed fears, and Iran: what’s driving the markets - US stock futures showed mixed movement on Tuesday as investors returned to trading following the Labor Day holiday.
RBA may consider further rate hike to combat inflation - Reserve Bank of Australia Assistant Governor Sarah Hunter said on Tuesday that the central bank could raise interest rates again if inflation proves more resilient than expected.
Bitcoin fell to the $78,000 level on Tuesday,
extending a pullback from last week's three-month high, as stronger-than-expected U.S. employment data revived expectations of a Federal Reserve interest rate hike this month, while a sharp rise in oil prices heightened inflation concerns.
The world's largest cryptocurrency was last trading 0.8% lower at $78,777.5 as of 12:39.
It had briefly climbed above $82,000 last week but subsequently retreated following the U.S. employment report released on Friday.
Bets on a September Fed rate hike remain around 60%
U.S. employers added 162,000 jobs in August—nearly triple economists' expectations—while the unemployment rate held steady at 4.1%.
According to CME FedWatch, this data pushed the market-implied probability of a 25-basis-point Fed rate hike at the September 16 meeting to approximately 60%, although other market indicators place the likelihood closer to the low end of the 50% range.
Higher interest rates typically put pressure on Bitcoin and other risk-sensitive assets by increasing the appeal of yield-bearing investments and tightening financial conditions. Treasury yields also rose, with the 10-year yield hovering around 4.8%.
Investors are now awaiting U.S. producer price data on Thursday and consumer inflation figures on Friday—the final key inflation indicators before the Fed meeting.
Oil prices added further downward pressure. Brent crude rose above $98 per barrel on Tuesday, reaching its highest level in about six weeks, as escalating tensions between the US and Iran sparked fears of supply disruptions and shipping issues in the Strait of Hormuz.
Despite a pullback, Bitcoin remains well above its recent lows following a gain of approximately 25% in August. US spot Bitcoin ETFs also recorded inflows of around $1 billion last week, extending a three-week streak of positive flows and providing market support.
Cryptocurrency prices today: altcoins show little change
Most altcoins traded within narrow ranges on Tuesday, extending losses amid cautious sentiment.
Ethereum, the world's second-largest cryptocurrency, gained 0.3% to reach $2,492.92.
XRP, the third-largest cryptocurrency, remained flat at $1.39.
Solana fell 1%, while Cardano rose 1.2%.
Among meme tokens, Dogecoin rose 0.9%.