Bitcoin recovered more than $1,500 to above $79,000 during the Asian session after sliding toward $77,638, as buyers repeatedly defended the support zone. The rebound unfolded while Brent crude approached $100 a barrel, stoking inflation concerns that have markets pricing a possible Federal Reserve rate hike next week.
Bitcoin climbed more than $1,500 to above $79,000 in the Asian session after touching $77,638, as Brent crude neared $100 on Federal Reserve rate uncertainty.
"The continuing conflict in the Middle East is keeping concerns over supply disruptions, and that in turn is worrying investors about the inflationary consequences of elevated oil prices," Fawad Razaqzada, market analyst at FOREX.com, said.
Brent rose 1.6% to $99.49 a barrel after Iran said it struck a US military base in Jordan and threatened tankers off Kuwait and Bahrain, while West Texas Intermediate gained 1.4% to $94.37. The 10-year Treasury yield climbed to about 4.8%, and futures markets price roughly a 58% chance the Federal Reserve raises rates by a quarter point next week, according to Axel Rudolph, chief technical analyst at IG. US consumer price data due Friday is expected to show inflation eased to 3.3% in August from 3.4% in July, still above the Fed's 2% target.
The bounce extends a pattern forming around the upper-$77,000 area: sellers can push Bitcoin lower, but buyers have repeatedly appeared before declines accelerate. Friday's inflation print and next week's Fed decision will likely determine whether the $77,600-77,638 support zone holds or breaks.
The buyers defending that zone look different from the dip-buyers of prior sessions. Rather than one large order absorbing the slide, the recovery has been funded by repeated, smaller bids clustered near $77,600-77,638 during the Asian session — a footprint consistent with accumulation rather than a short squeeze, though open interest data was not immediately available to confirm.
The macro backdrop cuts both ways. Higher oil feeds directly into the inflation prints the Fed has leaned on to justify lower rates, and a sustained run toward $100 would risk reversing the disinflation progress policymakers have cited while squeezing consumers and businesses. That dynamic has already hit risk assets broadly: the Dow Jones Industrial Average fell 1.2% to 52,786 on Tuesday, and the S&P 500 slipped 0.6% to 7,674.
Bitcoin's resilience relative to equities in the same stretch points to the support zone acting as a genuine demand floor rather than a passive level. Ether traded in a narrower band, and the move came without a pickup in Bitcoin dominance, suggesting the bid is specific spot demand near $77K rather than a broad flight into crypto.
The next test is binary. A hotter-than-expected CPI reading on Friday would harden the case for a hike and likely send Bitcoin back toward $77,638; a cooler print, or a Fed hold next week, could clear the path toward reclaiming $80,000 as resistance-turned-support.
This article is for informational purposes only and does not constitute investment advice.
