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Bitcoin dips below $81,000 amid odds of further Fed hikes
On Oct. 8, Bitcoin traded near an intraday low of $80,800 as market pricing showed an 85% chance of at least one more rate hike by December, according to CryptoSlate.
Bitcoin slipped below $81,000 on Oct. 8, reaching an intraday low near $80,800 even as traders expected the Federal Reserve to hold rates in October, according to CryptoSlate.
CryptoSlate said the September FOMC minutes, released Oct. 7, indicated most participants viewed another rate increase by year-end as probable and left decisions dependent on incoming data. Fed Governor Christopher Waller's Oct. 8 remarks also pointed to how extended the policy path is, with futures pricing assigning an 85% chance to at least one hike by December, nearly 80% on at least two hikes by March 2027, and 33% for three or more.
The outlet added that the probabilities are market-implied and cumulative, and that Waller said further hikes are probable if data evolve as expected, with the Fed able to skip meetings. CryptoSlate also noted that a 10-year Treasury yield reached 5.305% and the 2-year was at 4.821% on Oct. 8.
CryptoSlate linked the backdrop to broader funding conditions for risk assets, citing Brent crude at $104.87 and noting that higher yields can keep the cost of capital elevated even if the Fed skips an October meeting.
Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%|Bitcoin $81,827.00 ▼1.7%