UBS Sees Two Rate Hikes This Year, Weighing on Bitcoin Through December

UBS has revised its forecast for Federal Reserve rate hikes, now expecting two increases this year. The new outlook comes after strong August labor data and hawkish Fed communication.

The increased expectations for rate hikes could put pressure on Bitcoin through December, as higher rates may keep Treasury yields supported and preserve the appeal of dollar assets.

UBS's forecast extends the possible tightening horizon beyond the next meeting, with markets responding not only to the next Fed decision but also to the expected path of rates across several meetings.