BTC slips below $78K as September weakness and hawkish Fed weigh

Bitcoin fell below $78,000 on the first trading day of September, entering the historically weak "Rektember" period, CoinDesk reported. CoinDesk said Bitcoin has posted an average return of around -3% in September since 2013, making it the worst-performing month of the year on average. At the same time, CoinDesk noted Bitcoin closed higher in September in each of the past three years, overcoming that seasonal weakness. Macro uncertainty remains an overhang, according to the report. Fed Chair Kevin Warsh said at Jackson Hole that inflation remained elevated and signaled an intention to maintain a tight policy stance. Global bond markets weakened in response, while the U.S. 10-year Treasury yield rose to 4.784%. The market is pricing in a 66% chance of a 25-basis-point rate hike at the September FOMC meeting and is also expecting the possibility of an additional hike by year-end. CoinDesk explained that a high-rate environment can drain liquidity, strengthen the dollar and add downward pressure on risk-asset prices.