Bitcoin Drops Below $76K as Markets Price Near-Certain Fed Rate Hike

Bitcoin's price slipped below $76,000 on Tuesday ahead of a Federal Reserve decision that could bring the first US rate increase in more than three years.

The Fed's Federal Open Market Committee is set to announce its decision at 2 p.m. ET on Wednesday, with markets pricing a 92.5% chance of a quarter-point increase to 3.75%-4.00%.

This would be the first rate hike since 2023, and traders are bracing for the impact on Bitcoin's medium-term trend.

According to Loretta Mester, former Cleveland Fed president, the central bank will need roughly three quarter-point increases by the end of next year, which could put pressure on Bitcoin's price.