Crypto Market Rally Falters Amid Rising Odds of Fed Rate Hike

The crypto market rally is faltering due to rising odds of a Fed rate hike. The CME FedWatch tool indicates a probability of 86.5% for a rate increase at the September 16 meeting, up from near 70% before the August inflation report.

The sharp jump in CPI inflation to 3.4% year-over-year has led to this shift in expectations. A hike would mark the first increase in three years and signal a tighter monetary policy stance.

Despite the Fed rate hike concerns, Bitcoin's chart structure still points towards higher levels. Analyst Michaël van de Poppe expects consolidation before the next upward push, potentially reaching the $90,000 to $92,000 resistance zone.