Bitcoin price support materialized around $68,000 as markets saw a 93% chance of the Fed hiking rates by 0.25% on Wednesday.
Bitcoin (BTC) stayed near monthly lows at Wednesday’s Wall Street open as markets awaited the US Federal Reserve’s decision on interest rates.
Data from TradingView showed BTC/USD trading below $76,000 after hitting new September lows of $74,960 the day prior.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The weakness occurred as the CLARITY Act failed to garner enough votes in the Senate to advance to the debate stage, falling short of the 60 required. Now, attention has turned to the Fed, as it is facing a balancing act between taming inflation and satisfying the demand of US president Donald Trump, who has repeatedly demanded that rates be cut.
The latest data from CME Group’s FedWatch Tool put the odds of officials confirming a 0.25% rate hike at over 90% at the time of writing, bringing the federal funds rate to 3.75-4%.
Fed target rate probabilities for Sept. 16 FOMC meeting (screenshot). Source: CME Group
Commenting, trading resource The Kobeissi Letter noted that these odds made a rate hike a near certainty.
“In data going back to 2008, whenever expectations of a hike have been this high, the Fed has invariably delivered one. If the Fed decided to leave interest rates unchanged today, it would mark the biggest dovish surprise at a scheduled policy meeting since 1994,” it wrote in a post on X.
The meeting marks just one of three central-bank rate decisions this month. The European Central Bank enacted a 0.25% hike last week, while the Bank of Japan is expected to do likewise at its Friday meeting, bringing its benchmark rate to 1.25%, its highest in 31 years.
Central banks worldwide face increasing price pressures as oil supply chains battle the impact of an expanding war in the Middle East. US WTI crude oil hit $106.70 per barrel on Tuesday, its highest level since May 4.
CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView
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