On the Chain: Bitcoin slips below US$77,000 as rate fears test powerful August rally

Bitcoin has retreated below US$77,000 as renewed concerns over US interest rates and rising oil prices put pressure on cryptocurrencies following their strong August run.

The world’s largest cryptocurrency was trading around US$77,964, after briefly pushing above US$81,000 last week.

Ether was around US$2,410, down 2.1%, while XRP fell 2.5% to US$1.34 and Solana dropped 3.4% to just below US$100.

The pullback comes after Bitcoin gained around 24% during August, its strongest monthly performance since November 2024.

Rates and oil pressure crypto

Macro conditions have returned to the foreground following a sharp rise in oil prices and US bond yields.

Brent crude climbed towards US$91 a barrel following renewed military action around Iran, while the US 10-year Treasury yield reached around 4.78%. Markets have also increased bets that the Federal Reserve could raise rates at its September meeting.

Higher yields tend to reduce the appeal of non-yielding assets such as Bitcoin, putting the focus firmly on Friday's US employment figures.

A stronger-than-expected jobs report could reinforce expectations of tighter monetary policy and test Bitcoin's recent support around US$77,000.

However, the latest rally appears less reliant on leveraged speculation than previous crypto surges.