Bitcoin Breaks Down Amid Fed Rate Hike Odds
Bitcoin's recent breakout has cooled off as traders price in higher odds of another Federal Reserve rate hike. The cryptocurrency is currently trading near $84,490, down from Monday's high of $87,397.
The pullback follows a rally that saw Bitcoin climb from the mid-$70,000s to an eight-month high in under a week. Inflation concerns have pushed October rate-hike odds to roughly 75%, with December odds near 59% according to CME's FedWatch tool.
Binance's BNB and Solana are bucking the trend, however, with BNB up 2.75% and Solana climbing 2.31%. Both tokens have picked up new institutional signals, including a 30.6% weighting in Grayscale's Smart Contract Fund for BNB.
The next test will come on October 28 when the Fed makes its rate decision, which could determine whether this week's pause is a pit stop or the start of a longer retreat.