Bitcoin Slips as Fed Rate Hike Odds Rise to 60.4%

Crypto markets experienced a pullback on Tuesday as traders adjusted their positions ahead of the Federal Reserve's next rate decision. Bitcoin dipped 1.4% in the past 24 hours to $78,300, while the total crypto market cap fell 0.54% to $2.68 trillion. Ethereum also declined, trading at $2,470, down 0.75% on the day but still 0.3% higher over the week.

The main driver behind this move is shifting expectations for US monetary policy. Futures markets now indicate a 60.4% chance that the FOMC will increase rates by a quarter-point on September 16. As interest rates are expected to rise, risk appetite often cools, particularly after a strong run like August's rally.

Derivatives markets also reflect this caution, with open interest across crypto derivatives rising 2.19% to $414.24 billion and 24-hour derivatives volume increasing 4.51% to $611.83 billion. However, liquidations reached $155.93 million, including $108.48 million in long positions.

Analyst Daan Crypto suggests that Bitcoin is still stuck in a consolidation band, with the range levels to watch being $74,000 and $83,000. He advises patience until price breaks decisively in one direction, pointing out that this has taken almost three weeks at this point.