Bitcoin Holds Below $76K as Fed Rate Hike Odds Reach Near Certainty

Bitcoin's price hovered below $76,000 as markets awaited the US Federal Reserve's interest rate decision on Wednesday. The cryptocurrency had hit a new September low of $74,960 the previous day and was trading near its lowest levels since August 21.

The odds of a 0.25% rate hike were over 90%, according to CME Group's FedWatch Tool, which would bring the federal funds rate to 3.75-4%. The Kobeissi Letter noted that these high expectations made a rate hike 'a near certainty,' citing data from 2008 that shows the Fed has always delivered a hike when expectations are this high.

The failure of the CLARITY Act in the Senate meant attention shifted to the Fed's decision, with President Donald Trump demanding lower rates. Central banks worldwide face increasing price pressures due to oil supply chain disruptions caused by the Middle East conflict, which has pushed US WTI crude oil to $106.70 per barrel.

Onchain analytics platform Glassnode analyzed short-term Bitcoin price action and found that bid liquidity had pulled in toward the current spot price, with nearly two thirds of resting bids between 1% and 10% below it. This points to potential support levels at $68,000 and $71,300.