Bitcoin dropped below $79,000 in Asian trading Thursday as traders raised their bets on a potential Federal Reserve rate hike, putting pressure on most major cryptocurrencies.

BTC fell almost 1% to just under $79,000 after briefly topping $80,000 for the first time since May. Even with the decline, Bitcoin retained a 14% weekly gain.

XRP led losses among the largest tokens, sliding nearly 3% to slightly above $1.41. The cryptocurrency remained up about 28% over seven days, still giving it the strongest weekly performance among major assets. Hyperliquid’s HYPE fell more than 1% to below $81, while Tron lost less than 1% to trade just above $0.33.

Solana bucked the broader weakness, climbing nearly 4% to above $101 and bringing its weekly advance to around 19%. Ether rose roughly 1% to just below $2,494, while BNB added close to 1% to under $703. Dogecoin was little changed near $0.09.

The recent weekly gains have started to moderate as the seven-day window moves beyond last week’s sharp rally. Bitcoin’s weekly increase has narrowed to 14% from 23%, while Ether’s has fallen to 11% from 29%.

Fed Rate Expectations Weigh on Crypto

Shifting monetary-policy expectations are creating a less favorable backdrop for risk assets. Short-term Treasury yields moved lower overnight as traders increased bets on a rate hike, countering the falling-yield environment that helped Bitcoin rise from below $68,000 last week.

Federal Reserve Chair Kevin Warsh is scheduled to deliver his first keynote speech at Jackson Hole on Friday, ahead of the Fed’s Sept. 15-16 policy meeting.

LMAX Group markets strategist Joel Kruger said Bitcoin’s daily technical indicators are now in overbought territory. However, he cautioned that even severe overbought readings do not necessarily lead to a major correction.

The next key technical level, according to Kruger, is Bitcoin’s May high near $82,820. A convincing break above that level could reinforce the bullish trend and put $100,000 within reach.

Stocks Gain While Crypto Pulls Back

Equities performed more strongly during the session. Nvidia climbed nearly 5% in extended trading after signaling strong sales growth through 2028, while Marvell Technology and Sandisk also benefited.

MSCI’s Asia Pacific index rose around 0.5%, helped by gains in SK Hynix and Samsung Electronics. South Korea’s Kospi advanced nearly 2%.

QCP Capital, based in Singapore, offered a more cautious interpretation of Bitcoin’s recent rally. The firm said falling open interest suggests short positions are being closed, rather than traders aggressively establishing new long positions.

According to QCP, spot Bitcoin ETF inflows are providing the more convincing evidence of underlying demand. The firm warned that limited liquidity leaves uncertainty over whether the rally can develop into a durable trend or whether it is still dependent on temporary short-covering activity.