Bitcoin dips below $80,000 as Samsung-led tech jitters and a hawkish Fed weigh on crypto
Bitcoin fell below $80,000 as Samsung-driven tech weakness and a hawkish Fed hold triggered a broad risk-off move. Crypto futures saw $356 million in liquidations.
The US Federal Reserve's decision to maintain interest rates at 3.75% to 4% amid continued concerns about inflation has kept pressure on Bitcoin, according to market analysts. A 78% chance of a December rate hike is now priced in by traders, with analysts suggesting that Treasury yields, the US dollar and upcoming inflation data could be key factors influencing Bitcoin's trajectory.
Fed Chair Kevin Warsh acknowledged the ongoing inflation issue, stating that it has been above the central bank's 2% target for nearly six years. However, the Fed's decision and messaging have not been fully anticipated by investors, with some noting that the hawkish tone was unexpected. Analysts are now watching Thursday's personal consumption expenditures inflation report and earnings from major technology companies for potential clues on the direction of risk assets, as Bitcoin may face headwinds from elevated interest rates and competition with a near 4% risk-free rate.
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- Fed’s hawkish rate hold keeps pressure on Bitcoin: Analysts cointelegraph.com
