Crypto Market Rallies Falters as Rate Hike Odds Hit Record High

The cryptocurrency market is experiencing a downturn as traders raise the odds of a Fed rate hike to 86.5% at the September 16 meeting, according to the CME FedWatch tool.

This shift in probability follows fresh inflation data, which shows U.S. CPI inflation rose 3.4% year-over-year in August, fueling the increase in rate hike odds.

Broadly speaking, a hike would mark the first increase in three years and signal a tighter policy stance, putting pressure on the broader crypto market this week.

Bitcoin faces Fed rate hike pressure before the FOMC meeting, but its chart structure still points toward higher levels despite these concerns. Analyst Michaël van de Poppe expects a period of consolidation before the next upward push and projects a move toward the $90,000 to $92,000 resistance zone.