Fed Rate Hikes Weigh on Bitcoin, Gold Prices as Markets Anticipate More Increases

The recent Federal Reserve interest rate hike has had an impact on both Bitcoin and gold prices. According to data from the CME FedWatch Tool, investors are still expecting two more rate hikes in 2026, with 46% of investors anticipating a 25 basis point increase at the October FOMC meeting.

The Bank of England and the Bank of Japan are also hiking rates, citing rising oil prices as a concern for inflation. This has led to increased selling pressure on Bitcoin, which is currently defending its support level at $75,600.

Gold, however, has recovered some of its losses since the Fed hike, trading at $4,331 at the time of writing. Analyst Ian Cooper attributes this gain to traders' weak confidence in the rate hikes' ability to lower interest rates.

The looming rate hikes are bearish for Bitcoin and gold, as they strengthen the dollar and reduce the value of these assets priced in dollars. Additionally, investors may be more inclined to hold cash or short-term bonds with higher returns at high interest rates.