Rising U.S. Rate Hike Expectations Weigh on Cryptocurrency Prices
Bitcoin and other cryptocurrencies closed lower for the week amid growing expectations of a Federal Reserve interest rate hike in late September. Futures markets now price in over a 70% chance that the Fed will raise rates by 25 basis points at its Sept. 16 meeting, driven by recent inflation data and rising crude oil prices near $100 per barrel. Higher interest rates typically hurt risk assets like crypto, leading to Bitcoin trading below $80,000 for much of the week before settling around $77,500. Despite this pullback, cryptocurrency values remain significantly higher than a month ago when Bitcoin was under $65,000. Ethereum also faced downward pressure but remained near $2,500 at week's end. Meanwhile, U.S. Bancorp announced plans to launch its own stablecoin (USBDC), and the Ethereum Foundation outlined goals for quantum resistance by 2029 as part of long-term security planning. Other developments included Strategy’s decision not to purchase Bitcoin last week while repurchasing $176 million in preferred stock, Coinbase CEO Brian Armstrong expressing optimism about a Bitcoin bottoming out this cycle, and Bybit preparing to launch its European super app offering traditional banking alongside crypto trading.
Tickers: $MSTR
Topics: Bitcoin Crypto Price Trends Ethereum Federal Reserve Interest Rates