Bitcoin Drops Below $77K Ahead Of Potential Fed Rate Hike – CLARITY Act Vote Set To Add Crypto Volatility, Says Analyst

• CME FedWatch Data showed markets pricing in a 92.5% chance the Fed will raise rates by a quarter point on Wednesday, the Fed's first hike since July 2023.

• Twenty of 22 firms tracked by The Wall Street Journal expect a hike this month.

• Tom Lee called any potential hike a "policy error" as supply-shock inflation fades.

Bitcoin (BTC) slipped below the $77,000 mark on Tuesday ahead of the Federal Reserve's rate decision on Wednesday, with markets pricing in a 92% chance of a quarter-point hike that would end more than a three-year pause in rate increases.

However, crypto analysts like Bitmine Immersion Technologies (BMNR) chairman Tom Lee and MNFund founder Michael van de Poppe believe that a rate hike is unlikely. If the Federal Reserve does hike rates, it would be the first time since July 2023 that the cryptocurrency market has faced an interest rate increase.

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Bitcoin's price fell over 3.3% in the last 24 hours to around $76,200. On Stocktwits, retail sentiment around the apex cryptocurrency remained in the 'extremely bearish' zone over the past day.

What Are Analysts Saying?