Bitcoin Stuck Below $86K as Rate Hike Odds Soar

Bitcoin (BTC) is facing a crucial test as it heads into September. The cryptocurrency has been battling key resistance levels, and markets are now turning hawkish on Federal Reserve policy.

The Fed's decision to hike interest rates in September is seen as increasingly likely, with a 60% chance of a 0.25% rate increase at the upcoming meeting.

This shift in expectations comes after the Jackson Hole economic symposium, where new Fed chair Kevin Warsh hinted that forward guidance may be a thing of the past. He stated that current inflation data is still too high, despite July's lower-than-expected Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index readings.

The upcoming week will bring multiple US employment indexes, including nonfarm payrolls data due on Friday. Analysts expect the economy to have added 50,000 jobs last month, which could temper expectations for a rate hike.