Fed Rate Hike Odds Hit 93%, Bitcoin Price Plunges to Critical Level
Bitcoin's price has been affected by growing expectations of a Federal Reserve rate hike. According to CME FedWatch data, there is a 92.7% chance that the Fed will increase interest rates by 25 basis points. This would put the target range between 3.50% and 3.75%. The upcoming decision is seen as crucial for the cryptocurrency's price, with traders across digital asset and traditional stock markets bracing for tighter monetary policy.
The outcome of today's press conference may carry more weight than the benchmark rate decision itself, according to Wharton professor Jeremy Siegel. He noted that political pressure and upcoming midterm elections represent key factors influencing Fed policy choices. Meanwhile, former Fed governor Stephen Miran warned against unexpected policy shifts, stating that raising rates while inflation cools shows an inconsistent approach by central bank leaders.
BTC's price held near $75,594 ahead of the Fed announcement, reflecting a 1.17% decline over a 24-hour period. If the Fed stops raising rates today, Bitcoin could quickly bounce back from $76,000. However, if Warsh raises rates by 25 basis points and signals more hikes ahead, BTC's price could drop below $75,000.