Cryptocurrency market declines amid interest rate hike speculation

The cryptocurrency market experienced a significant downturn as Bitcoin and major altcoins saw price declines. Bitcoin fell to approximately $77,621, representing a 1.57% drop, while Ethereum, Solana, Dogecoin, and XRP all experienced losses exceeding 3%.

Market volatility was driven in part by rising expectations of interest rate hikes following remarks at the Jackson Hole meeting. While the Federal Reserve has not explicitly confirmed a September rate hike, market probabilities for an increase during the upcoming FOMC meeting rose from roughly 35% to 60%.

In corporate developments, Ethena announced plans to expand its USDe backing strategy to include equity perpetual futures. This move aims to diversify revenue sources beyond the cryptocurrency market by tapping into the larger global equity market.