Bitcoin Volatility Ahead as Rate Hikes Return, Trump-Xi Meeting Looms
Bitcoin opened the week above $80,000 after briefly dropping towards $75,000 in response to the Federal Reserve's decision last week.
The central bank raised its interest rates by 25 basis points for the first time since July 2023, bringing the rate range to 3.75%-4.00%.
This move marked a return to monetary tightening and caught investors off guard, leading to volatility in Bitcoin's price.
Despite the Fed's decision, Bitcoin regained its losses by the end of the week, suggesting that the market is adjusting to the new interest rate environment.
Looking ahead, several events will shape the market this week, including speeches from Federal Reserve officials, the release of US PMIs for September, and a meeting between Donald Trump and Xi Jinping on Thursday.