Bitcoin Holds Near $78,000, Preserving Most of August's 25% Rally Amid Macro Headwinds

  • Bitcoin recovers above $78,200 after tumbling to $77,578 Tuesday.
  • Long liquidations hit $33.32 million versus $21.7 million in shorts.
  • August gain near 25% holds as bond yields and oil prices climb.

Bitcoin recovered above $78,200 by mid-morning Tuesday after a volatile session that sliced through levels on either side of $77,200–$79,000, leaving the cryptocurrency little changed and its market capitalization near $1.57 trillion following an almost 25% advance in August. Price briefly looked set to finish Monday above $79,000, then repeatedly lost that level overnight before a sell-off drove it to $77,578 around 9:40 a.m. EST and a rebound restored a roughly 0.5% daily gain. Coinglass data showed $33.32 million in long liquidations against $21.7 million in shorts for bitcoin, while broader crypto longs liquidated at $102 million versus $90.6 million in shorts. The chop unfolded against a global government-bond sell-off that has lifted borrowing costs across major economies, compounded by energy-price pressure after Brent crude briefly topped $90 amid the military conflict in Iran and heavy technology-sector borrowing for artificial-intelligence infrastructure. Institutional cushions cited earlier—including multi-day spot bitcoin ETF inflows and Strategy’s late-August purchase of 4,603 BTC—remain part of the backdrop, while expanded U.S. Treasury bond buybacks announced by Treasury Secretary Scott Bessent are being watched as a potential liquidity support. Traders are focused on the August employment report and Sept. 11 inflation figures for clues to the Federal Reserve’s mid-September FOMC decision, with a rate cut framed as supportive for bitcoin and an unchanged stance leaving the asset more exposed to pullbacks.

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