October Rate Hike Pause Could Breathe New Life into Bitcoin

Fed officials are leaning towards pausing rate hikes in October, which could be beneficial for Bitcoin. According to Federal Reserve Vice Chair Philip Jefferson, policymakers may need more time before making another rate move.

The probability of an October hike has dropped to around 25%, after traders earlier considered another move much more likely. This change in expectations removes some of the immediate policy pressure that has weighed on Bitcoin in recent weeks.

A lower probability of an October move could ease one source of pressure on Bitcoin, if Treasury yields continue to retreat. Higher government bond yields give investors a relatively attractive return on lower risk assets and can make speculative assets less appealing.