Bitcoin remained under pressure around US$78,000 on Thursday morning as surging oil prices, rising bond yields and growing expectations of another US interest rate hike kept cryptocurrency investors cautious.
The world's largest cryptocurrency was trading around US$78,300, while Ethereum changed hands near US$2,470. XRP was around US$1.40 and Solana near US$102, with most major tokens slipping over the past 24 hours.
Crypto markets are increasingly being driven by the same macro forces dominating equities and bonds, with renewed geopolitical tensions pushing Brent crude above US$100 a barrel and reviving concerns about another inflationary shock.
Bitcoin caught between oil and rates
Bitcoin briefly rallied as high as US$79,742 on Wednesday, at one stage moving alongside gold rather than equities as investors reacted to escalating US-Iran tensions.
The move faded, however, leaving Bitcoin back below the psychologically important US$80,000 level.
Oil's surge is complicating the interest rate outlook. Higher energy prices threaten to keep inflation elevated at a time when markets are already considering whether the US Federal Reserve may need to tighten policy further.
Traders have been pricing roughly a 60% probability of a quarter-point rate increase at the Fed's September 15-16 meeting, putting increased attention on upcoming US inflation readings.
That is a difficult combination for cryptocurrencies.
Higher rates and bond yields increase the return available on lower-risk assets, while tighter financial conditions generally reduce the liquidity that has historically supported speculative markets.
Bitcoin nevertheless continues to hold a broad trading range of roughly US$77,000 to US$82,000, suggesting buyers have so far absorbed the deterioration in the macro backdrop.
Institutional demand offers support
Institutional flows remain one of the more constructive signals.
US spot Bitcoin exchange-traded funds attracted almost US$1 billion of net inflows in the week ended September 4, following around US$925 million the previous week.
August produced US$3.52 billion of Bitcoin ETF inflows, the strongest monthly result since September 2025, while Ether products brought in US$1.85 billion.
Flows have become more uneven this week, however. Bitcoin ETFs recorded a US$46.65 million net outflow on Tuesday, highlighting continued caution as investors await greater clarity on inflation and interest rates.
Zcash bucks broader weakness
Away from Bitcoin, Zcash (ZEC) has emerged as one of the strongest performers.
The privacy-focused cryptocurrency climbed above US$1,180 after Grayscale said its recently launched Zcash ETF had surpassed US$500 million in assets under management.
The fund now holds more than 550,000 ZEC, equal to roughly 3% of circulating supply, while Zcash gained more than 40% over the week.
The performance provides another example of how newly available institutional investment products can influence individual cryptocurrency markets, particularly where circulating supply is comparatively limited.
Inflation data takes centre stage
For Bitcoin, the immediate direction is likely to come from macroeconomics rather than blockchain developments.
With oil above US$100, Treasury yields elevated and the Federal Reserve's next decision approaching, traders will be watching the final inflation readings ahead of the meeting particularly closely.
A hotter-than-expected result could strengthen expectations of another rate increase and put Bitcoin's support around US$77,000-US$78,000 back under pressure.
A softer reading could instead ease pressure on yields and give Bitcoin another opportunity to challenge US$80,000 and ultimately the recent US$82,000-plus resistance area.
For now, Bitcoin's ability to remain near US$78,000 despite oil, rates and geopolitical uncertainty suggests the market is proving resilient — but the next major move may depend less on crypto itself than on what happens to inflation.
