Major cryptocurrencies extended their declines on Tuesday as traders reassessed the outlook for U.S. monetary policy. Bitcoin and other large-cap tokens fell on the day, although most continued to post weekly gains. Markets are now pricing in roughly a 60% probability of a Federal Reserve rate increase next week.

Bitcoin traded below $78,800, down more than 1% from the previous session, while still maintaining a small gain over the past seven days, CoinDesk data showed.

The largest cryptocurrency has struggled to reclaim the $80,000 mark on a closing basis for nearly two weeks. Despite that resistance, Bitcoin has yet to give up the broader advance that pushed it higher during August.

Zcash suffered the sharpest decline among major tokens, dropping nearly 5% to around $1,125. Even after Tuesday’s fall, the token remained up about 33% for the week, making it the strongest large-cap performer over seven days. HYPE declined more than 3% to approximately $84, while Solana dropped over 2% to slightly above $103, with both assets losing their previous weekly gains.

Ether slipped around 1% to below $2,482, while XRP traded near $1.39 after a modest decline. Tron was little changed at approximately $0.33. Dogecoin and BNB showed relative strength, each falling by only a fraction of a percent. Both retained weekly gains, with Dogecoin up nearly 9% and BNB more than 7%.

The latest pressure on crypto markets has been linked to rising Treasury yields. The 10-year U.S. Treasury yield remained near 4.8% after August payrolls increased by 162,000, dramatically exceeding forecasts of around 53,000. The stronger employment figures have pushed traders to price in approximately a 60% chance of a 25-basis-point Fed rate hike at next week’s meeting, an outcome that would have been considered highly unlikely earlier this year.

The dollar index slipped below 99 for a second consecutive session as investors positioned for potential tightening by the Bank of Japan. Gold continued to climb, moving above $4,430.

Joel Kruger, a market strategist at LMAX Group, said crypto has managed to withstand the unfavorable macroeconomic environment without experiencing major technical deterioration.

Brent crude also remained elevated, trading above $97 per barrel and reaching its highest level in six weeks. The move followed Iran’s announcement that an agreement with Oman to manage shipping through the Strait of Hormuz was close to completion. The development came after a weekend of U.S. and Iranian strikes involving vessels and military targets. Persistently high oil prices could keep inflation pressures elevated ahead of Friday’s consumer-price figures.

Asian stock markets opened the week in mixed territory. South Korea’s Kospi jumped almost 5% to its highest level since late July, while Japan’s Nikkei gained more than 2% as investors moved into AI-related memory-chip stocks. Hong Kong’s Hang Seng fell nearly 1%.

Yusuf Fakhro, a partner at ARP Digital, said options-market sentiment has improved significantly, with the fear that dominated the earlier bear market now largely fading. He also noted that long-term holders became net buyers in late August for the first time during the current market move.

The market’s next major tests will come from Thursday’s producer-price index and Friday’s consumer-price index, which are the final key inflation readings before the Federal Reserve meeting. A hotter core CPI reading could push the probability of a rate hike toward 66% and increase the risk of Bitcoin testing the $77,000 support level.