Bitcoin's $82k Hurdle: Rate Hike Odds and Short-Term Volatility Bite

The Federal Reserve's potential rate hike is affecting Bitcoin's short-term momentum. A recent analysis by CryptoQuant found that the probability of a rate hike was increasing, with the FedWatch tool showing an 87.3% chance of a 25 bps increase to 375-400 bps.

This has led to caution among investors, and the cryptocurrency market saw $685.5 million in liquidations on Friday following the U.S. CPI report. Bitcoin's spot ETFs have also seen outflows over the past four trading days.

However, despite these challenges, Bitcoin has been steadily climbing towards its key resistance zone at $82k. A recent 13.6k BTC flush in leverage has reset the market, making a liquidation cascade less likely by wiping out over-leveraged traders.