Bitcoin Wavers as Fed Turns Hawkish While Strategy Doubles Down With $370M Buy

Fed's Hawkish Signal Pressures Bitcoin and Ethereum

Crypto markets opened the week on shaky footing. Bitcoin traded near $78,000 on Monday, August 31, pulling back from highs above $80,000 reached earlier in the week, while Ethereum slipped toward $2,400. The retreat followed Federal Reserve Governor Kevin Warsh's remarks at the Jackson Hole symposium, where he signaled the central bank still has "work to do" on inflation — language markets read as raising the odds of a rate hike rather than a cut later this year.

Adding to the risk-off mood, U.S. airstrikes on Iranian rocket launchers near the Strait of Hormuz over the weekend renewed hostilities in the Middle East, pushing oil prices higher and reinforcing expectations that borrowing costs could rise. Higher rates typically dent appetite for volatile assets like crypto, since safer instruments become more attractive by comparison. Despite the pullback, Bitcoin remains on pace for one of its strongest months since late 2024, having gained roughly 24% in August alone.

Strategy Breaks Its Bitcoin-Buying Pause

Against that backdrop, one of crypto's most closely watched corporate players made a notable return to the market. Strategy Inc., the Bitcoin treasury company led by Michael Saylor, disclosed in an SEC filing that it purchased 4,603 BTC for approximately $369.7 million between August 24 and August 30 — its first acquisition since June 22, ending a 10-week hiatus from buying.

The purchase was funded through the sale of roughly 4.5 million shares of Strategy's Class A common stock, which raised about $602.8 million. Of that total, the company allocated $369.7 million to Bitcoin purchases, $151.8 million to repurchasing its STRC preferred shares, $50.7 million to preferred dividends, and the remainder to its USD cash reserve. The move followed a cryptic weekend post from Saylor declaring "We're ₿ack," a signal that preceded the official announcement.

Strategy's total Bitcoin holdings now stand at approximately 845,050 BTC, acquired for a cumulative $63.73 billion at an average price of $75,412 per coin — a stash representing more than 4% of Bitcoin's total 21 million supply. Shares of the company rose as much as 1.72% on the news, putting the stock on track for its best month since November 2024.

What It Means for the Market

The juxtaposition is telling: macro pressure from the Fed and geopolitical risk are pushing crypto prices lower in the short term, while one of the market's largest institutional buyers is signaling renewed conviction. Strategy's pause had fueled speculation that its aggressive accumulation strategy was cooling, particularly after the company sold roughly 7,000 BTC across several transactions since May to shore up its balance sheet. Monday's purchase, alongside CEO Phong Le's earlier comments that buying would resume "later this year," suggests that shift may have been a temporary recalibration rather than a permanent retreat.