Crypto Market Braces for Potential Rate Hike as US Inflation Forecasts Soar

The crypto market is on high alert as Wall Street banks have raised their forecasts for US PCE inflation, boosting bets on a potential Fed rate hike in September.

The banks' revised predictions came after the latest US Consumer Price Index (CPI) data, which aligned with Wall Street expectations.

Barclays now expects monthly US core PCE inflation near 0.25%, up from its previous estimate of 0.22%, while Goldman Sachs sees the figure at roughly 0.26%, compared to its prior forecast of 0.24%.

The stronger readings could complicate the Fed's policy choices, raising bets over a potential rate hike in September.