Bitcoin Prices Soar as Fed Rate Hike Odds Plummet
Cryptocurrency prices rose as investors became less optimistic about a potential rate hike by the Federal Reserve, according to the latest market analysis. The Fed's monetary policy decision is scheduled for September 16, and market expectations have shifted towards a pause in rate hikes.
According to the CME FedWatch tool, the likelihood of a quarter-percentage rate hike on September 16 has fallen below the half-mark to 48.4 percent, down from 63.2 percent a day earlier. The decline in rate hike expectations was exacerbated by weak labor market data and dovish comments from a Fed official.
The easing of global bond yields and the dollar's retreat also contributed to the uptick in cryptocurrency prices. Bitcoin (BTC) is currently trading at $79,798.30, up 3.5 percent on an overnight basis, while Ethereum (ETH) has risen 2.5 percent to $2,454.96.
The overall cryptocurrency market capitalization has jumped to $2.64 trillion, with Bitcoin dominating the market at 59.6 percent and Ethereum accounting for 11.2 percent.