90% Chance of Fed Interest Rate Hike Sparks Warning for <b>Bitcoin</b>

Crypto analyst Sherlock has predicted that the probability of the Fed raising interest rates next week has risen to approximately 90%, which could create significant selling pressure on Bitcoin. According to data shared by Sherlock, the probability of the Fed raising interest rates increased from 58.4% to 86.4% in just seven days.

Sherlock examined how Bitcoin performed after the 20 Fed interest rate hikes that have occurred since 2015. The analysis found that while Bitcoin generally did not react sharply on the days when interest rate decisions are announced, it often experienced a pullback in the following month.

In fact, in 17 out of the 20 interest rate hikes examined, Bitcoin was at lower levels 30 days later. Furthermore, in 19 out of those 20 examples, $BTC fell below its price on the day the interest rate decision was announced at some point during the month-long period following the decision.

The median decline was calculated at 9.3%. The analyst noted that if $BTC is around the $78,000 level, a pullback of similar magnitude could take the price to approximately $70,700.