Bitcoin Price Slips Below $79,000 Amid Rising Interest Rate Hike Expectations
The price of Bitcoin (BTC) slipped below $79,000 on September 8, according to Moomoo data. This decline is part of a larger trend, as CoinDesk reported that odds of a Fed hike are holding near 60%. The shift in interest rate expectations has put pressure on the cryptocurrency market.
UBS Group's (UBS.US) recent hawkish turn has added to this uncertainty. The financial institution raised its interest rate hike forecast to two increases, suggesting that the macroeconomic tightening environment may persist until year-end. This would increase the opportunity cost of holding Bitcoin, making non-yielding assets like BTC riskier.
Despite these challenges, some market indicators suggest resilience in the Bitcoin market. Zhitong Finance reported that Bitcoin's daily transaction volume approached 900,000 on September 7, marking the fourth-highest level on record. This surge in transactions was accompanied by a rise in active addresses and a complex fee structure.