Fed Rate Hike Looms: Bitcoin Faces Pressure as US Interest Rates Decision Nears
Bitcoin has been trading near its lowest levels since August 21st as markets await the US Federal Reserve's decision on interest rates. The cryptocurrency remains below $76,000, with nearly 93% odds of a 0.25% rate hike, which would bring the federal funds rate to 3.75-4%. This has led to increased pressure on Bitcoin, causing it to hit new September lows of $74,960.
The Fed's decision is seen as a balancing act between taming inflation and satisfying US President Donald Trump's demand for lower rates. The latest data from CME Group's FedWatch Tool puts the odds of officials confirming a 0.25% rate hike at over 90%. This would make a rate hike nearly certain, with TradingView showing BTC/USD trading below $76,000.
Onchain analysis platform Glassnode has identified potential support levels for Bitcoin, including $68,000 and $71,300. If the range breaks, the next floor is expected to be around $62K to $65K, where a significant block of supply was last bought onchain.