Cryptocurrencies Hold Steady Amid Rising Rate Hike Expectations
The Federal Reserve's upcoming monetary policy decision has left global markets in a state of uncertainty. The latest inflation numbers for August have caused market sentiment to become increasingly volatile, with rate hike expectations from the Fed rising dramatically.
According to data released by the U.S. Bureau of Labor Statistics, core inflation unexpectedly rose 0.3 percent on a month-on-month basis, spooking markets that had expected it to remain steady at 0.2 percent. The unexpected jump in core inflation has caused market expectations for a pause by the Federal Reserve to dramatically tone down, with the CME FedWatch tool now showing a likelihood of a pause at just 14.4 percent.
Despite the mixed triggers, cryptocurrency markets have managed to remain firm above the flatline, with Bitcoin trading between $76,296.50 and $79,695.70 during the past 24 hours. Ethereum ranged between $2,438.53 and $2,653.07 during the same period.
The overnight plunge in crude oil prices attributed to diplomatic efforts to ease tensions around the Strait of Hormuz has limited losses on account of the renewed rate hike fears. The U.S. Dollar's strength against a basket of 6 currencies is currently trading at 98.97, implying an overnight decline of 0.08 percent.