Crypto Markets Tumble Ahead of CPI Report Amid Fed Rate Hike Bets
Cryptocurrency markets are experiencing a rough week ahead of the August CPI report, with Bitcoin, Solana, and XRP taking the biggest hits. According to recent data, BTC has fallen around 5.5% over the past week to approximately $76,815, unable to clear the $80,000 mark that's been capping its rallies since late August. Meanwhile, Solana's price dropped 5.2% over the same stretch, while XRP was the week's worst performer among majors, down 9% to $1.32.
Ethereum's price also took a hit, down 2.7% for the week. However, Zcash stood out as an exception, with its token still higher on the week despite Friday's pullback. The token is poised to end the week in the green with a gain of 8.6%, unlike the other major tokens.
Traders are currently pricing roughly a 70% chance of a Fed rate hike at the September 16 FOMC meeting, which could put additional pressure on crypto markets. According to Fundstrat's Tom Lee, a cooler reading in Friday's CPI report could quickly reduce expectations for a September rate hike and give markets room to recover.