Why is Bitcoin price down today?

Bitcoin $BTC has fallen about 0.7% over the past 24 hours to around $77,800 on Aug. 31, extending its retreat after another failed attempt to hold above $80,000.

The latest decline came as global markets priced in a higher chance of another Federal Reserve rate increase following Chair Kevin Warsh’s speech at Jackson Hole on Friday.

Warsh said inflation remained too high and indicated that further tightening could be needed to return inflation to the Fed’s 2% target.

The implied probability of a September rate increase subsequently climbed to about 57% on Monday, while the two-year US Treasury yield reached its highest level in more than a month.

Barclays also revised its forecast following the speech and now expects two 25-basis-point increases, in September and December.

The bank had previously expected rates to remain unchanged through the end of 2026.

Higher yields weighed on other risk assets, with Asian equities falling on Monday and US and European stock futures trading lower as markets adjusted to the prospect of tighter monetary policy.

Renewed conflict between the US and Iran added to the selling pressure over the weekend.

US forces struck Iranian missile launchers on Larak Island, followed by retaliatory Iranian attacks against US forces in Jordan.