Rate Hike Odds Surge, Weighing on Bitcoin Ahead of September FOMC Meeting

The Federal Reserve's decision to raise interest rates is weighing on Bitcoin's price as traders increase their odds of a rate hike at the September 15-16 Federal Open Market Committee (FOMC) meeting.

CME FedWatch data showed that the probability of a 25-basis-point hike rose to around 66%-70% in early September, up from 35% before Federal Reserve Chair Kevin Warsh's Jackson Hole speech.

Bitcoin fell below $78,000 after Warsh's August 28 remarks, dropping more than 3% during the session as Treasury yields moved higher and traders priced in a more hawkish Fed.