Bitcoin Falls Below $77K as FOMC Meeting Looms
Bitcoin's price has fallen below $77,700 as traders prepare for the Federal Reserve's FOMC interest rate decision tomorrow. The market is under pressure, with nearly 79,000 traders liquidated and total liquidations reaching $337.75 million in the past 24 hours.
The main factor contributing to this decline is the Senate procedural vote on the Digital Asset Market Clarity Act, which has been met with opposition from banking groups over its stablecoin 'circuit breaker'. This has reduced market hopes for the bill's passage, with prediction market odds falling from 44% to 18% ahead of the September 15 vote.
Additionally, markets are pricing in a 93% chance of a Fed rate hike, leading traders to reduce their exposure to Bitcoin. Rising Brent crude oil prices have also added pressure, moving above $106 a barrel due to rising Middle East tensions. Higher oil prices can push inflation higher and keep Treasury yields elevated.
The Federal Open Market Committee will announce its interest rate decision on Wednesday, September 16, at 2:00 p.m. ET. August inflation has kept pressure on markets, with CPI at 3.4% year over year and PPI at 5.4%. Markets are now pricing a 93% chance of a 25-basis-point rate move.
Despite Bitcoin's price drop, U.S. spot Bitcoin ETFs recorded $159.9 million in net inflows on September 14, giving the market some support. However, ARKB saw $42 million in outflows, reducing the overall inflow.