Fed Rate Hike Looms: What Does it Mean for Bitcoin?

The Federal Reserve is expected to raise interest rates today, giving traders and investors a sense of unease across both the crypto and stock markets. According to interest rate futures, there's a 92.7% chance that the Fed will hike rates on Wednesday, with inflation sitting at 3.4% and the target range at 3.50-3.75%. This move typically puts pressure on risk assets like Bitcoin.

Bitcoin currently trades near $76,022, down 1.17% in 24 hours. Analysts warn that if the Fed hikes rates, it could lead to a tumble below $75,000, while a pause would likely ease selling pressure and help a rebound. The market's reaction may not just depend on the rate hike itself but also the tone set by Federal Reserve Governor Kevin Warsh in his press conference.

Warsh's appointment was seen as a nod to President Trump, who had promised him a seat as Fed Chair. However, with inflation running high and the target range in place, Warsh may struggle to meet those expectations. Wharton professor Jeremy Siegel has argued that Trump pressure and midterms are the only forces blocking a hike, while former Fed governor Stephen Miran made the case against hiking based on data.