Crypto Market Recap Sep 1: Bitcoin Slips Under $77,500 USD as Fed Hike Bets Firm
Bitcoin (BTC) drifted lower through Tuesday and sat under $77,500 USD late in the evening, with Ethereum (ETH) down harder, after a jump of more than 5% in crude oil firmed market bets that the Federal Reserve will raise rates at its September 16 meeting. This crypto market recap covers a modest slide rather than a crash, but the reason behind it is worth more attention than the size of the move.
The tape
Crypto trades continuously, so the figures below are a snapshot rather than a close. Data as of 11:05 p.m. ET on September 1.
| Asset | USD price | 24h | CAD price | 24h |
|---|---|---|---|---|
| Bitcoin (BTC) | $77,439.87 USD | -1.41% | $107,650.55 CAD | -1.06% |
| Ethereum (ETH) | $2,410.32 USD | -2.29% | $3,352.52 CAD | -1.89% |
Ethereum took the larger hit in both currencies. Bitcoin’s 24-hour reference point was $78,548.63 USD, so the drop is measured in hundreds of dollars, not thousands.
Tuesday’s move is also small next to what came before it. Bitcoin’s 25% August slide did the real damage, and this looks like a continuation of that stretch rather than a fresh shock.
Why crypto fell: oil, Iran, and the Fed
The chain starts with energy. WTI crude printed $90.41 USD per barrel in Tuesday afternoon trading, up 5.42% from the previous settlement of $85.76 USD. That is an afternoon print taken at 3:30 p.m. ET, not a settlement.
Behind the oil move is renewed US-Iran hostility around the Strait of Hormuz after roughly a month of relative calm. CNBC and CBS, citing CENTCOM, reported that US forces struck two Iranian rocket launchers on Larak Island on Sunday, August 30, and that Iran targeted US forces in Jordan. Larak Island overlooks the Strait, and the concern reported is disruption to oil shipments moving through it.
Higher oil feeds the inflation story, and that is where crypto gets caught. Futures pricing reported on September 1 implies roughly two-in-three odds of a quarter-point Fed hike at the September 15-16 meeting. The central bank held at 3.50% to 3.75% in July with three dissents in favour of a hike, and the July FOMC minutes flagged ongoing inflation concerns as energy prices rose.
Rate expectations are the mechanism. Higher rates raise the cost of holding assets that pay nothing while you hold them, and neither Bitcoin nor Ethereum pays a yield.
What gold confirms
Gold fell on the same day, printing $4,382.60 USD per ounce in Tuesday afternoon trading, down 1.09% from $4,431.10 USD. That detail matters for reading the session correctly. If the market were bidding up inflation hedges, gold and crypto would be the obvious beneficiaries of an oil spike. Both fell instead, which is consistent with rate-hike odds, rather than inflation itself, doing the work.
That is the market’s leading explanation for a modest move, and it is worth holding that loosely.
The Canadian angle
The Bank of Canada announces its own decision on Wednesday, September 2. Futures markets price essentially no chance of a move: one-month CORRA futures on the Montreal Exchange imply 2.25%, with only about 0.26 basis points of change priced in. The Bank of Canada overnight rate has sat at 2.25% since October 30, 2025, when it was cut from 2.50%.
So the contrast for Canadian readers is a Fed that may be about to hike against a BoC expected to sit still. A widening rate gap tends to pressure the loonie, and the loonie already slipped 0.42% on Tuesday to 0.7189 against the US dollar. That is why the CAD-denominated declines above are smaller than the USD ones. A softer loonie partially cushions the value of crypto held in Canadian dollars.
If holding coins through headline-driven swings like this one is not appealing, the listed alternative is equity exposure. Our roundup of Canadian crypto stocks covers the names available on Canadian exchanges.
What to watch
Two dated events sit directly ahead. The Bank of Canada decides on Wednesday, September 2, with a hold at 2.25% priced. The Fed decision follows on September 16, and futures currently imply roughly two-in-three odds of a quarter-point hike. If oil stays elevated, those hike odds are the number to track, because they have been the more direct driver of crypto prices this session than anything happening on-chain.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Crypto prices are an 11:05 p.m. ET snapshot taken September 1, 2026; crypto trades continuously so this is not a close. Oil and gold are 3:30 p.m. ET afternoon prints compared against Monday’s settlements.
