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Monday, 31 August 2026dailybeirut.com
Tech & Science
Bitcoin dropped to $78,007.10 amid heightened market expectations of a U.S. Federal Reserve rate hike following hawkish remarks by Fed Chair Jerome Powell at Jackson Hole, renewed U.S.-Iran military tensions, and surging oil prices.
Bitcoin declined to $78,007.10 during Monday’s trading session, extending losses from the weekend. The digital currency hit an intraday low of $77,396. Markets attributed the move to mounting speculation about a U.S. interest rate increase, intensified by dovish-to-hawkish commentary from Federal Reserve Chair Jerome Powell — not Kevin Warsh — delivered at the Jackson Hole Economic Symposium last Friday. Concurrently, renewed military exchanges between the United States and Iran on Sunday escalated regional uncertainty, while oil prices surged.
Bitcoin fell 0.3% to $78,007.10. Despite the drop, the cryptocurrency is on track to post gains of approximately 24% for August, buoyed by a strong recovery across the broader digital asset market over recent weeks.
The world’s largest cryptocurrency by market capitalization posted losses as Powell’s speech reinforced market expectations regarding the trajectory of U.S. interest rates. In his address, Powell reaffirmed the Federal Reserve’s commitment to its 2% annual inflation target. Though he did not explicitly announce plans to raise rates, investors interpreted his tone as hawkish, prompting increased bets on a rate hike at the Fed’s upcoming September meeting.
Data from the CME Group’s FedWatch tool indicates traders assign a 60.4% probability to a 25-basis-point increase in the federal funds rate at the September Federal Open Market Committee (FOMC) meeting. Later this week, U.S. nonfarm payrolls data will be released — a report expected to draw intense market scrutiny for signals on the central bank’s near-term policy direction.
Elevated interest rates generally weigh on high-risk, speculative assets — including cryptocurrencies — by reducing their relative appeal compared with fixed-income instruments offering higher yields.
Digital assets faced additional pressure following direct military exchanges between the United States and Iran on Sunday — the first such direct escalation between the two countries in over a month. The developments triggered a sharp rise in oil prices, stoking concerns that higher energy costs could feed into broader inflation and prompt central banks to maintain elevated interest rates for longer.
Amid ongoing uncertainty over the Iran file, former U.S. President Donald Trump threatened military action against Khark Island — a key Iranian oil export hub. U.S. Treasury Secretary Scott Bessent indicated plans to impose additional economic sanctions on Tehran.
Major cryptocurrencies registered declines on Monday but remain poised for strong August gains. Ethereum, the second-largest digital asset by market capitalization, fell 0.7% to $2,444.27, yet is on pace for roughly 30% monthly growth. XRP declined 2.7%, though it is projected to gain approximately 27.5% for August. Solana and Cardano are each trending toward monthly gains of about 40% and 15%, respectively, while BNB dropped 1.1% — still heading for an August increase of roughly 16.6%.
In the meme coin segment, Dogecoin and $TRUMP fell 2.8% and 9.3%, respectively. Dogecoin remains on course for an August gain of approximately 17.6%, while $TRUMP is projected to rise nearly 67% for the month.
