Fed Interest Rate Decision Looms Large Over Bitcoin Markets
Bitcoin's price volatility has increased over the past week due to strong US employment data and expectations of a potential interest rate hike from the Federal Reserve.
The Fed's decision will be critical, with UBS predicting two interest rate hikes in September and December, while Goldman Sachs points out that Friday's inflation data release will determine the outcome.
A 60.4% probability of a 25 basis point interest rate hike is currently priced into markets, according to CME FedWatch data.
Investors are closely watching the Fed's decision as it could impact Bitcoin's price, with a rate cut potentially increasing liquidity and risk appetite, while a rate hike or hawkish messages could lead to a strengthening of the dollar and a move away from risky assets.