Goldman Sachs Reverses Fed Call Twice, Sending Shockwaves Through Crypto

Goldman Sachs changed its Federal Reserve forecast not once but twice in four days, sending shockwaves through financial markets. The bank initially expected a rate hike on September 16 but then shifted to calling for another increase in October.

The reversal was prompted by the Fed's updated rate projections, higher inflation forecasts, and comments from Chair Kevin Warsh about financial conditions. This new outlook could have significant implications for Bitcoin (BTC) and XRP, as markets had already priced in the September hike.

Bitcoin initially moved higher after the Fed's decision but then gave back some of those gains. The cryptocurrency is currently trading near $76,300, up roughly 18% over the past month but still about 34% below its level a year ago.

XRP also moved higher after the announcement but remains exposed to further selling pressure while it remains below its 200-day moving average. With two rate hikes in two months, markets may struggle to adjust, potentially putting downward pressure on both cryptocurrencies.