Bitcoin held firm above $78,000 during Asian trading on Tuesday, September 1, 2026, while Hyperliquid's HYPE token stood out as the only major large-cap gainer of the session. Ether, solana, and other major cryptocurrencies slipped as traders increasingly bet that the Federal Reserve will deliver another rate hike this month.

Bitcoin Defends $78,000 as Fed Expectations Weigh on Risk Appetite

Bitcoin traded near $78,714, up roughly 1.53% over 24 hours, with a market capitalization of about $1.58 trillion, according to CoinGecko market data. The largest cryptocurrency moved in an intraday range of approximately $77,200 to $79,200 during the Asian morning.

The $78,000 level has become the line Bitcoin has defended as broader macro conditions turned less favorable to risk assets. That resilience is notable because the coin's positive 24-hour move came against a backdrop of tightening monetary expectations.

The pressure traces back to Fed Chair Kevin Warsh, who said in his August 28 Jackson Hole remarks that 12-month PCE inflation stood at 3.7% and the six-month annualized rate reached 4.1%, both above the central bank's 2% target. Warsh said policymakers must be confident inflation is moving toward target at sufficient speed, or the Fed still has work to do.

Higher-for-longer rate expectations tend to pull capital toward yield-bearing assets and away from non-yielding ones like Bitcoin, and the reaction has extended across the market. The U.S. 10-year Treasury yield sat at 4.78%, a competing return that raises the bar for risk assets. The dynamic is familiar from prior Fed tightening cycles, when higher policy rates and rising Treasury yields repeatedly pressured speculative assets, making Bitcoin's ability to hold its defended level a more demanding test than a routine consolidation.

HYPE Leads While Other Major Tokens Lose Ground

Hyperliquid's HYPE token was the session's standout, rising about 4.67% to around $83.93 and marking the only major large-cap gainer, CoinDesk reported. HYPE is the native token of Hyperliquid, a decentralized exchange focused on perpetual futures trading, and it has been among the most prominent large-cap performers since its late-2024 launch. By contrast, ether and solana each slipped roughly 1%.

The divergence frames HYPE's move as relative outperformance within a broadly cautious market rather than a market-wide rally. One token leading does not cancel out the risk-off tone set by weakness across the other majors, and historically single-token strength during macro-driven risk-off sessions has often proved short-lived rather than the start of a broader rotation.

The case for continued strength rests partly on sustained institutional demand. According to unconfirmed reports relayed by CoinDesk, Strategy returned as a buyer last week with $370 million of bitcoin, and desk commentary counted $924 million of ETF inflows across nine straight positive sessions before a $202 million outflow ended the streak on Friday. Those flow figures have not been independently verified against issuer tables. Spot bitcoin ETF flow streaks have been a closely watched gauge of institutional appetite since the products launched in the U.S. in January 2024, which is why the end of the nine-session inflow run drew desk attention.

What Traders Will Watch Next for Bitcoin, Altcoins, and Fed-Driven Volatility

The near-term question is whether Bitcoin can keep defending $78,000. Sentiment remains risk-on, with the Fear & Greed Index at 69, in "Greed" territory, even as macro positioning turns more cautious.

Rate pricing is the swing factor. U.S. money markets were pricing a 60% chance of a hike at the September 16 FOMC decision, with Friday's jobs report and the September 11 CPI release the key near-term data points, Barron's reported.

The bear case is that hotter data or firmer Fed rhetoric broadens the weakness now hitting altcoins, pulling Bitcoin back below its defended level. Not everyone reads the odds as settled, however.

Strategist Jim Bianco argued the September meeting is a "lean hike," not a done deal, noting the probability of a hike closed Friday at 58% rather than 95%.

The probability of a hike closed Friday at 58%, not 95%. So, yes,the next Fed meeting is "lean hike," not a done deal. Or, as I I detailed in a post yesterday, it's looking like it's going to be a 7 to 5 vote. I just don't know if seven is for hold or Hike. — Jim Bianco (@biancoresearch) August 30, 2026

Source: @biancoresearch on X

For now, the split between Bitcoin's stability and altcoin softness leaves the market in a fragile balance, with the jobs and inflation prints likely to decide whether HYPE's leadership marks a durable rotation or a one-session outlier.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.