Bitcoin Holds Above $83,000 as Zcash Drops 12% Amid Oil and Rate Concerns
Bitcoin stabilizes near $83,000 while Zcash leads losses
Bitcoin traded just above $83,100 on Tuesday morning, slipping less than 1% from previous levels. This move comes as global stock markets fell to a one-week low and oil prices climbed for a second day.
Zcash (ZEC) saw the sharpest decline among major tokens, dropping 12% to approximately $1,380. Meanwhile, the total value of the cryptocurrency market remained steady near $2.86 trillion.
Market movements and key figures
- Bitcoin dipped slightly to test the lower end of last week's trading range.
- Zcash fell 12%, marking the largest drop among top cryptocurrencies.
- Solana and Hyperliquid each lost between 3% and 4%.
- The Graph (GRT) rose 18%, while Immutable (IMX) gained nearly 10%.
- Brent crude oil prices increased over 1% to nearly $107 per barrel.
- The 10-year US Treasury yield reached 5.25%, its highest level since 2007.
Analyst view on current conditions
Alex Kuptsikevich, chief market analyst at FxPro, noted that Bitcoin is testing the lower boundary of its recent consolidation range. He stated that a retest of the $82,000 level is expected under current market conditions.
Kuptsikevich highlighted two potential paths forward. A sustained drop below $80,000 could signal that the market is not ready to rise soon. Conversely, if bullish momentum returns quickly, prices could move well above $90,000.
External pressures driving the trend
Pressure on crypto prices stems from rising bond yields and oil costs. Higher returns on government debt make non-yielding assets like Bitcoin less attractive to some investors. Additionally, rising oil prices contribute to inflation concerns.
Traders are increasingly betting that the Federal Reserve may raise interest rates again. This expectation grew as hopes for a diplomatic breakthrough with Iran faded, pushing oil prices higher. Global stock indices, including the Nasdaq 100, also declined amid these concerns.
Upcoming economic data
Attention now turns to Wednesday, when the US Commerce Department will release the Personal Consumption Expenditures (PCE) price index for August. This report is the primary gauge watched by the Federal Reserve to measure inflation. A higher-than-expected reading could strengthen bets on further rate hikes.
Market sentiment remains mixed
A popular crypto sentiment index stood at 74 out of 100 on Monday, approaching the "extreme greed" threshold. This contrasts with the stock market, which has shown fear for the past 20 days.
Where to find the original report
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