Fed Rate Hike Looms: Bitcoin's Price May Plummet by 9.3%

Crypto analyst Sherlock says there's a 90% probability that the Federal Reserve will raise interest rates next week, which could put significant selling pressure on Bitcoin (BTC). The analyst examined how BTC has performed after past Fed rate hikes and found that it often initially rises but then falls. In fact, in 17 out of 20 instances, Bitcoin was at lower levels 30 days later.

The data shows that the median decline for Bitcoin during this period is 9.3%. If the price of BTC is around $78,000, a pullback of similar magnitude could take it down to approximately $70,700. Sherlock also noted that the market is not pricing in just a single interest rate hike, with futures market pricing indicating a 72.6% probability that rates will be at least 50 basis points above current levels by December.