Bitcoin is back below $81,000 as Fed rate uncertainty weighs
Bets on an October Fed rate hike briefly spiked to nearly 50% after Wednesday’s inflation report, but have since cooled.
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Summary
- Bitcoin fell below $81,000 after hotter-than-expected U.S. inflation data revived concerns that the Federal Reserve could raise interest rates in October.
- Markets pared the odds of an October rate increase to about 26% to 30% after initially pricing in a nearly 50% chance following the inflation report.
- Fragile institutional demand, including $150.5 million in U.S. spot bitcoin ETF outflows on Oct. 14, and broader economic uncertainty are weighing on liquidity and risk appetite.
