Hawkish Fed Stance Crushes Bitcoin Hopes

The Federal Reserve's hawkish stance and rising interest rates have put downward pressure on Bitcoin's price. On August 30, at 4PM UTC, BTC was above $82,000, but the chances of it reaching that target were slim, with only a 0% chance according to Decrypt.

Warsh Hardens' hawkish stance and above-50% September hike odds apply direct near-term downward pressure on BTC price heading into the August 30 settlement. The Fed's tightened monetary policy has made it harder for risk assets like Bitcoin to grow.

The PCE at 3.7% and six-month pace at 4.1% with progress stalled for two years adds to the hawkish tone. Goolsbee's stagflation warnings and a 30% July hike probability add macro headwinds that bear on where Bitcoin trades by end of August.

Clarida Warns Every Fed Meeting Live for Hikes, Limiting Bitcoin Relief, as he said each FOMC meeting is 'live' for rate hikes while U.S. inflation remains above target and elevated versus global peers. The FOMC deeply split, with a slim majority seeing only two more cuts in 2025.