Bitcoin below $77,000, Zcash leads losses as traders bet on a Fed rate hike
Ninety-five of the CoinDesk 100 fell over the past 24 hours, and bitcoin has shed more than 5% on the week.
The Swiss Franc experienced a decline as the US Dollar strengthened due to expectations of a Federal Reserve rate hike this September. The likelihood of a 25-basis-point increase next week surged to over 72% according to the CME FedWatch Tool, up from 61% previously. Investors are also watching the upcoming US consumer price index report, which could bolster these tightening expectations.
The US Producer Price Index (PPI) rose 5.4% year-over-year in August, surpassing analyst forecasts of 5.3%. Meanwhile, the Swiss Franc is under pressure due to a widening interest rate gap between Switzerland and the United States. While other central banks are tightening monetary policy, the Swiss National Bank (SNB) has kept its key rate at 0% through the end of the year.
However, a significant drop for the Swiss Franc is likely to be mitigated by shifts in global currency markets. In response to hawkish expectations from the Bank of Japan and joint Yen-buying interventions by the US and Japan, traders are moving away from the Yen and into the Swiss Franc, making it an attractive safe-haven currency.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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