Bitcoin regained ground after briefly falling below $78,000, while Zcash continued to attract strong investor demand as Grayscale’s newly launched exchange-traded fund surpassed $500 million in assets.

BTC touched $77,666 on Tuesday before buyers pushed it back toward $78,900 during early Asian trading on Wednesday, according to CoinDesk data. The recovery left Bitcoin almost unchanged over 24 hours, although the cryptocurrency remained nearly 2% higher over the week.

Zcash delivered a much stronger performance. Grayscale announced that its Zcash ETF, trading under the ticker ZCSH on NYSE Arca, had crossed the $500 million asset mark just two weeks after launching on Aug. 25.

The fund has attracted more than $70 million in cumulative inflows since its debut, alongside a $100 million investment from DCG International Investments. Its holdings have grown to more than 550,000 ZEC, representing approximately 3% of Zcash’s 16.9 million circulating supply.

ZEC traded above $1,180 on Tuesday, gaining more than 4%. Its 24-hour trading volume stood at roughly $1 billion, while its market capitalization reached about $20 billion, placing it among the cryptocurrency market’s 10 largest assets over the past week.

Performance among other major cryptocurrencies was more subdued. BNB climbed almost 2% to around $755, while Tron rose more than 1% to roughly 34 cents. XRP gained about 1% to $1.42. Ether remained near $2,490 and Solana around $103, with both showing limited movement. Dogecoin hovered around 9 cents, while Hyperliquid’s HYPE approached $86. The combined crypto market capitalization was approximately $2.8 trillion.

Macroeconomic and geopolitical developments continued to shape broader market sentiment. Brent crude moved toward $100 per barrel following U.S. strikes on Iranian tankers near Kharg Island, missile retaliation and Houthi attacks on Saudi refining infrastructure. Gold traded around $4,407 an ounce, roughly 30% above its level a year earlier.

U.S. Treasury yields remained elevated, with the 10-year yield near 4.8% and the two-year yield above 4.3%. Traders were pricing in around a 60% probability of a Federal Reserve rate hike at the following week’s meeting, according to CME FedWatch.

Jasper De Maere, an OTC trader at Wintermute, said crypto markets were currently being driven largely by interest-rate expectations rather than developments specific to digital assets.

He expects additional volatility as investors digest the final economic data ahead of the Fed’s Sept. 15-16 policy meeting. De Maere identified $75,000 and $82,000 as key Bitcoin levels heading into the FOMC decision.

Thursday’s producer price index and Friday’s consumer price index are the final major economic releases before the meeting, with core CPI expected to ease to 2.4%.

Bitfinex analysts also pointed to ETF flows as an important indicator for Bitcoin’s near-term direction. They said traders will be watching whether ETF inflows remain positive through the Sept. 9 Treasury buyback and Sept. 11 CPI release while the two-year Treasury yield remains above 4.34%.

If crypto investment continues despite elevated short-term Treasury yields, the analysts said it could suggest that markets are becoming less reliant on Federal Reserve policy rates as the main factor limiting digital-asset demand.