Bitcoin and Ethereum ended the Sept 7-11 week under pressure as surging oil prices, persistent US inflation and growing expectations of a Federal Reserve (Fed) interest-rate hike dampened appetite for risk assets.
Bitcoin fell to around US$77,100 by Sept 11, retreating from above US$79,000 at the start of the week and losing roughly 3% on a weekly basis. The world’s largest cryptocurrency briefly approached US$80,000 during the period but struggled to sustain gains as Treasury yields climbed and investors turned cautious ahead of US inflation data.
Ethereum traded around US$2,450-US$2,460 on Sept 11, little changed on the week but below the US$2,500 level that repeatedly capped gains. Ethereum had traded near US$2,490 earlier in the week before slipping towards US$2,400 as selling pressure intensified.
Crypto sentiment weakened alongside other risk assets as Brent crude surged above US$100 a barrel during the week, fuelling fears that higher energy costs could keep inflation elevated. US consumer prices subsequently reinforced expectations that the Fed could raise rates at its Sept 16 meeting.
Bitcoin, nevertheless, remained near an important support zone around US$77,100, while Ethereum continued to hold above US$2,400, leaving traders focused on whether either cryptocurrency can regain upward momentum following the Fed’s policy decision.
