Fed Rate Hike Odds Plummet as Bitcoin Surges Past $80,000
The CME Group's FedWatch tool has revised its odds for a September 16 Federal Reserve rate hike, now showing a 50/50 chance. This is a significant shift from just two days prior, when a 70% probability was assigned to the hike.
The change in outlook has had a notable impact on Bitcoin's price, which has rallied past $80,000 and currently trades near $81,000, up around 5% over 24 hours. The asset's movement is being attributed to easing pressure on Treasury yields and the dollar, both of which are tailwinds for Bitcoin's price action.
The timeline for a second rate hike has also been pushed back, with markets now pricing in a move to the 4.00-4.25% range until March 2027 rather than December 2026. This shift away from hawkish rate bets is being driven by Iran-driven oil and bond volatility.