Fed Rate Hike Odds Surge to 87% as Bitcoin Trades Near $77,256

The Federal Reserve is gearing up for a major policy shift as markets now see an 87% chance of a rate hike at its September 15-16 meeting. This comes after August's Consumer Price Index (CPI) data showed inflation above the Fed's 2% target.

With Bitcoin hovering around $77,256, traders are watching how higher interest rates could impact the crypto market. Economists now overwhelmingly expect a 25-basis-point increase at the upcoming meeting, with rate futures putting the odds at 87%, up from 72% just yesterday.

Fed Chair Warsh's concerns about inflation staying high have led many to believe that a September hike is 'almost locked in,' according to Chief Economist Heather Long. This would be the first Fed rate increase in three years, with markets now pricing in at least three rate hikes through June 2027, up from two previously.