Bitcoin holds $73,000 as odds of a December 50 bps rate hike jump
Summary
Hotter-than-forecast October inflation raised the market-implied chance of a 50-basis-point Fed hike in December to 13.6%, while a quarter-point hike remained the dominant expectation at 86.4%. The expected hike size rose from 21.0 to 28.4 basis points. A Reuters poll also found economists overwhelmingly expect a 25-basis-point increase. Bitcoin fell below $73,000 as Treasury yields and the dollar climbed and gold weakened. US spot Bitcoin ETFs saw about $1.5 billion in net outflows from Nov. 2 to Nov. 9. Further Fed decisions depend on upcoming PCE inflation, jobs data and policymakers’ views. Persistent inflation and tighter policy could weigh on Bitcoin, while softer data may ease pressure; liquidation estimates are not price forecasts.
