Fed Hike Odds Squeeze Crypto Market as Bitcoin Prices Slide

Rising expectations of a US Federal Reserve interest rate hike are weighing on Bitcoin and the broader crypto market. The global cryptocurrency market experienced a mild correction, with Bitcoin trading at $76,654.01 and Ethereum dropping to $2,481.77.

Binance Coin is down to $717, while XRP is hovering around $1.35 during the trading session on Sunday. The total crypto market capitalisation declined by 1.13% to $2.61 trillion over 24 hours.

Market analysts said rising expectations of a Federal Reserve rate hike this week are tightening financial conditions and weighing on Bitcoin and the broader crypto market. US inflation for August came in hotter than expected, with core consumer price index (CPI) rising about 0.3% month over month, above consensus.

Fed officials have become more vocal about the need to reassert inflation-fighting credibility, and core PCE has been stuck above 3 per cent this year, reinforcing the case for at least one hike.