Bitcoin Tests Support as Fed Rate Hike Expectations Surge

Bitcoin is heading into a crucial week as the Federal Reserve prepares to make a decision on interest rates. According to futures markets, there's an 86.5% probability of a rate hike, with Goldman Sachs joining the camp that expects a 25-basis-point increase.

The FedWatch Tool shows that 16 out of 20 forecasters expect a September hike, with most major banks now anticipating a larger tightening than initially thought. This could have implications for Bitcoin's price action, as a rate hike is often seen as a risk-off event that can weigh on risk assets like cryptocurrencies.

Bitcoin has been holding onto its $76,380 support level despite several probes, but the key will be whether it can defend this level in the face of a potential rate hike. A sustained hold above this level would keep the correction contained near the first retracement, while a daily close below it could shift attention to the 38.2% retracement at $72,820.