Bitcoin Hurtles Towards Crucial Resistance as Hawkish Fed Sentiment Escalates

Bitcoin faces key resistance as markets shift hawkish on Federal Reserve policy. The Federal Reserve's upcoming rate hike decision has sparked renewed expectations of a 0.25% interest-rate increase at its September meeting, with odds now standing at just below 60%, up from 41.4% last week.

According to CME Group's FedWatch Tool, markets are increasingly anticipating the Fed to hike rates in response to recent inflation data. However, this could be tempered by labor-market numbers, particularly the upcoming August nonfarm payrolls data release on Friday, which is expected to show a 50,000 job gain last month.

Meanwhile, oil prices have surged due to renewed US strikes on Iran and an unprecedented US-Venezuela oil-supply deal. Brent crude has surpassed $90 per barrel, nearing its highest levels in a week, while European stocks have come under pressure.