Bitcoin and Ethereum ended the Aug 24-28 week lower after a midweek rebound faded, as renewed expectations of tighter US monetary policy triggered fresh selling across the crypto market.
Bitcoin finished the trading session of Aug 28 at around US$77,844, down about 1.5% from its close near US$78,990 on Aug 24. The cryptocurrency had climbed above US$81,000 during the week before giving back those gains.
Ethereum also weakened, ending Aug 28’s trading at roughly US$2,443, around 1.6% below its Aug 24’s US$2,483 close. Ethereum briefly traded above US$2,500 and touched an intraday high near US$2,560 on Aug 27.
Both cryptocurrencies initially benefited from a softer US dollar, liquidity optimism and improving sentiment around the US regulatory landscape for digital assets.
However, the momentum reversed on Aug 28 after Federal Reserve Chair Kevin Warsh reinforced the central bank’s focus on controlling inflation, reviving expectations of a possible September rate hike.
The shift in rate expectations pressured risk assets broadly, sending Bitcoin and Ethereum lower into the end of the week and wiping out much of their earlier gains.
