Crypto
Bitcoin's $82k Rally Halted by Rate Hike Fears
The cryptocurrency market is facing increased volatility due to rising probabilities of a Federal Reserve rate hike. According to the FedWatch tool, there's an 87.3% chance of a rate increase, which could lead to a bearish Bitcoin price reaction.
However, recent data suggests that a liquidity flush has reset leverage in the market. Binance's BTC reserves have reached a 2-year high, and the Coinbase Premium Index has slipped into negative territory again. This indicates that investor demand is decreasing.
Despite this, Bitcoin continues to climb towards the key $82k resistance zone. However, it remains at risk of losing short-term bullish momentum due to increasing odds of a rate hike.