Crypto market slides as Bitcoin drops to $78k amid Fed rate anxiety

Major digital assets posted broad declines across global cryptocurrency markets over the past 24 hours. According to data from CoinMarketCap, Bitcoin slipped by 0.68% to trade at $78,355.31.

Ethereum fell 0.79% to $2,477.58, BNB dropped 3.77% to $722.83, and Bittensor ticked down 0.11% to $257.46. The broader CoinMarketCap 20 Index fell 0.95% over the same period to stand at 161.87 points.

Bucking the wider downturn, select privacy coins and gold-backed tokens posted gains. Zcash rallied 3.05% to $1,247.67, while Monero gained 2.27% to reach $514.81. Gold-pegged tokens also advanced: PAX Gold (PAXG) rose 0.79% to $4,412.71, and Tether Gold (XAUT) climbed 0.71% to $4,408.00.

The crypto complex faces compounding macroeconomic headwinds as elevated Middle East tensions keep oil above $100 a barrel, U.S. Treasury yields strengthen, and uncertainty mounts over Federal Reserve monetary policy. Traders are pricing in an estimated 60% probability of a Fed rate hike in September, with investor focus locked on upcoming U.S. inflation prints.

N.Tebrizli