UBS Turns Hawkish: Two Rate Hikes Expected by End of Year

UBS has revised its forecast to expect two Federal Reserve rate hikes in September and December due to strong August employment data and inflation risks. This hawkish stance may extend macroeconomic headwinds for Bitcoin into year-end, as rising interest rates increase the opportunity cost of holding non-yielding assets like Bitcoin.

The tight monetary environment may suppress risk appetite and leverage, keeping pressure on crypto markets until potential policy shifts occur. UBS's latest forecast predicts the Federal Reserve will raise interest rates twice this year, extending potential macroeconomic headwinds for Bitcoin into December.