Bitcoin faces fresh pressure after Fed’s hawkish rate hold: Analysts
Summary
The Federal Reserve held its benchmark rate at 3.75%–4% in a 10-2 vote but signaled concern about inflation remaining above its 2% target. Market analysts said investors had expected a hold but were surprised by the hawkish tone, which could weigh on Bitcoin as higher rates make risk-free assets more competitive. CME FedWatch data showed a 78.4% chance of a quarter-point rate increase by December. Fed Chair Kevin Warsh declined to predict the next decision. Analysts said Bitcoin’s near-term direction may also depend on Treasury yields, the dollar, broader risk sentiment, Thursday’s PCE inflation report and major technology-company earnings.
