# Bitcoin Dips Below $77K, XRP Falls Under $1.40 Amid Fed Concerns Cryptocurrency market declines following hawkish signals from the Federal Reserve. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-08-29 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0903c9d7-cfad-405d-b38d-6b921f6b72af ## Bitcoin's Sharp Decline After twice surpassing $81,000 last week, Bitcoin experienced a sharp drop following the Fed Chair's statements. Falling below $77,000, BTC saw its lowest level in five days. Market capitalization declined to $1.555 trillion while its dominance over altcoins remained above 57%. The sell-off accelerated as investors moved away from risk assets amid tightening monetary policy concerns. ## Altcoins Follow Bearish Trend Ethereum dropped 3% to $2,430, failing to break the $2,500 resistance. BNB moved further from the $700 level, trading below $690. XRP declined from $1.45 to $1.38, marking a 3.2% daily loss. Major altcoins like Solana, Dogecoin and Chainlink showed similar declines, with total market capitalization losing $80 billion in 24 hours. ## Bitcoin's Volatile Week BTC had rallied from below $65,000 on August 19 to nearly $80,000 within 48 hours. After dipping to $75,500 last weekend, it reclaimed $81,000 early this week. However, hawkish Fed signals pushed it below $77,000. The market found no positive catalysts from the Jackson Hole symposium, with investors pricing in potential rate hikes. ## Technical Indicators Analysis TradingView data shows Bitcoin faced resistance after hitting a 15-week high at $81,500. The Relative Strength Index (RSI) exited overbought territory while increasing volume indicates selling pressure. The $77,000 level emerges as critical support, with breaks below $75,000 potentially triggering steeper declines. Traders should prepare for continued short-term volatility. ## Impact of Fed Policy Fed Chair Warsh's emphasis on aggressive inflation control weighed on risk assets. Crypto markets lost over 60% during the 2022 rate hike cycle. Market participants now price in a 75% chance of September rate increases. This could maintain downward pressure on cryptocurrencies in the near term, particularly if macroeconomic uncertainty persists. ## Market Dynamics Total crypto market capitalization fell to $2.72 trillion. Among altcoins, only a few projects like Monero and Rain posted daily gains. Bitcoin's sustained market dominance suggests investors still view it as a relative safe haven during uncertainty. However, technical indicators point to potential continuation of the bearish trend short-term. ## Historical Context After testing $69,000 in late 2021, Bitcoin remained in a downtrend for 16 months. The current rally saw it reach a 15-week high at $81,500. But Fed policy and macroeconomic concerns raise sustainability questions. Historical data shows September has typically been a challenging month for BTC, with increased volatility. ## Investor Takeaways Recent declines highlight crypto markets' sensitivity to macroeconomic developments. Volatility may increase further ahead of key Fed decisions. Risk management becomes crucial for short-term traders, while long-term investors might watch for buying opportunities. The market holding above $2.7 trillion remains a positive indicator despite current pressures. ## Sources covering this story - https://cryptopotato.com/btc-recovers-from-sub-77k-dip-xrp-drops-below-1-40-weekend-watch/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._