BTC Price Uncertainty: Inflation Fears and Rate Hike Odds Weigh On Crypto
The price of BTC on September 1 at 4 PM UTC was uncertain due to various macroeconomic factors. According to Decrypt, there is a 99% chance that BTC will be above $76,000 on that day, but only a 26% chance it will reach $78,000 or higher.
The Strait of Hormuz closure and tanker attacks have cut oil production by 10 million barrels per day, spiking oil prices to $92.10 per barrel. This has re-ignited global inflation fears and put pressure on the entire price board bearish.
Rising global yields and a 70% probability of a Fed rate hike are also weighing on crypto risk appetite. The 30-year US Treasury yield has approached 2007 highs, while 10-year yields have surged to 4.8%. This tightening discount rate for risk assets, including crypto, is causing markets to price in structural fiscal risk.