Bitcoin Breakout Cools as Fed Rate-Hike Bets Climb
Bitcoin fell to around $84,490 after touching $87,397 earlier in the week as markets priced in a higher chance of another Federal Reserve rate hike. Inflation data and Fed commentary lifted October hike odds to about 75%, with December near 59%. Higher rates typically strengthen the dollar, improve returns on cash and bonds, and reduce appeal for non-yielding, volatile assets like Bitcoin. They also tighten liquidity and raise leverage costs, pressuring crypto. The broader crypto market cooled, with total capitalization slipping to about $2.93 trillion. Most major coins edged lower or flat, while BNB and Solana outperformed on institutional and ecosystem news. Despite the pullback, spot Bitcoin ETFs saw nearly $1 billion of inflows in a single day, and the market’s Fear and Greed Index remained in “greed” territory. Traders are now focused on the Fed’s October 28 decision.
