Bitcoin Slumps Below $84K as Fed Rate Hike Bets Intensify

Bitcoin's price has fallen below $84,000, marking a potential shift in short-term market momentum. This correction comes after BTC surged to a weekly high of $87,378 on Monday, suggesting possible profit-taking and buyer exhaustion.

The Federal Reserve's decision to log a second consecutive interest rate hike in October is weighing heavily on the market, with investors pricing in a 66% probability of a rate increase between 4.00% and 4.25%. Additionally, Treasury yields have pushed into territory not seen since 2007, reaching 5.2% for the 10-year bond and 5.5% for the 30-year bond.

Gold's technical weakness persists as its price slips below $4,300, aligning with prevailing bearish momentum signals. The dense cluster of moving average resistance suggests that upside potential remains limited, with the next key support zone lying around $4,200.