Bitcoin Prices Plummet as Fed Rate Hike Odds Surge Past 50%
The Federal Reserve's upcoming decision to hike interest rates has significant implications for Bitcoin's price. According to ChatGPT, an AI platform, the initial reaction would be negative if the Fed hikes rates in 11 days.
Markets currently put a 60% probability on a September rate hike after the strong US jobs report and Federal Reserve Chair Kevin Warsh's hawkish stance. Bitcoin's price has already reacted to these developments with a minor decline before recovering some losses.
If the Fed increases rates, ChatGPT predicts a 2-5% decline in BTC's price over the next ten days, testing the $75,000 support level. A more severe scenario could see Bitcoin drop below $70,000 for the first time since mid-August if Warsh remains hawkish.
However, ChatGPT warns that a 50-basis-point rate hike could lead to an even steeper decline of up to 15% in BTC's price within a day or so. This would send Bitcoin plummeting below $70,000 and potentially into the mid-$60,000 range.