Goldman Sachs Warns of Another Rate Hike, Crypto Market Sees Brief Respite

The crypto market has been on a rollercoaster ride this week, but recent data suggests it may be due for another challenge. Despite the latest Federal Reserve rate hike having minimal impact on digital assets like Bitcoin and other altcoins, Goldman Sachs is now predicting another Fed rate hike in October.

According to Walter Bloomberg, Goldman Sachs' prediction comes just a day after the central bank announced a 25 bps rate hike on September 16. The financial services firm also hinted at another rate hike this year, signaling that the central bank may become more hawkish to curb inflation.

The odds of a Fed rate hike in October are now over 50%, according to the CME FedWatch Tool. However, the prediction markets data shows that the odds of a 25 bps rate hike are less than 50%. This suggests that investors are already pricing in a potential rate increase ahead of the central bank's meeting.

Despite this uncertainty, the crypto market has experienced some recovery today, with Bitcoin trading above $76,000. However, the risk remains high as higher rates can impact riskier assets like cryptocurrencies.