Bitcoin Slips to $84k as Rate-Hike Odds Weigh on BTC

Key Moments

• Bitcoin (BTC) trades below $84,000 on Thursday, extending a three-day losing streak amid renewed rate-hike expectations.
• Worldcoin (WLD) and Pepe (PEPE) log double-digit losses over the past 24 hours, emerging as the weakest large-cap tokens.
• Market-based odds point to a roughly 70% chance of a 25 bps Federal Reserve rate increase to the 400-425 bps range in October.

Macro Backdrop Pressures Crypto Risk Appetite

Bitcoin (BTC) is trading below $84,000 on Thursday, deepening losses after a 2% drop the previous day. The move coincides with renewed concerns over inflation and potential rate hikes, following an uptick in US economic survey data.

US composite and services Purchasing Managers’ Index (PMI) readings climbed to 58.4 and 58.7 in September, respectively, indicating higher prices paid by businesses, as previously reported by FXStreet. These figures are feeding expectations that the US Federal Reserve (Fed) could opt for another interest rate increase at its October policy meeting.

According to the FedWatch Tool, markets are assigning approximately a 70% probability that the Fed will raise the federal funds rate by 25 basis points (bps), bringing the target range to 400-425 bps.