Bitcoin Tumbles Below $80,000 as Goldman Sachs Predicts Fed Rate Hike

Goldman Sachs has revised its monetary scenario, predicting a 25-basis-point Fed rate hike next week due to stronger-than-expected core inflation in August. This change comes as bitcoin trades below $80,000.

The probability of a rate hike now exceeds 86%, according to CME FedWatch. The September decision could impact market reactions and influence the path of interest rates afterwards.

Goldman Sachs initially defended the hypothesis of a Fed without change until the end of 2026 but revised its forecast in light of new data. Analysts anticipate a 25 basis point hike at the September 16 meeting, which would raise the federal funds target range from 3.50% to 3.75%. Several institutions now consider a tighter decision.

Bitcoin's price remains below $80,000 while markets factor in a different monetary environment. The Wall Street Journal reports that investors almost consider a rate hike next week a given, shifting attention to the path of rates after this possible decision.