Bitcoin Volatility Peaks as Fed Rate Hike Looms

Bitcoin's price has been highly volatile in recent weeks, reaching as high as $82,000 before falling back below $80,000.

This volatility is largely attributed to strong US employment data and expectations that the Federal Reserve may raise interest rates.

UBS analysts predict two 25 basis point interest rate hikes from the Fed in September and December, citing hawkish statements by Fed Chairman Kevin Warsh at the Jackson Hole meeting and rising supply-side inflation risks.

GOLDMAN SACHS, on the other hand, points to Friday's inflation data as a key indicator of whether the Fed will raise interest rates. The bank believes that a moderate US CPI figure could support a scenario where the Fed leaves interest rates at current levels in September.