Last week, the odds of an interest rate hike in September declined to just 30%, down from a previous high of around 76% last month.
This drop came after U.S. inflation dropped to 3.4% in July, 10 basis points below June’s print.
That said, inflation is still sitting 140 basis points off the Federal Reserve’s target rate of 2%. During the last FOMC meeting, three governors disagreed with the committee’s decision to keep rates unchanged.
Hence, even though a rate hike might be delayed, the Fed’s stance on monetary policy is still hawkish, and that’s what’s keeping crypto prices in check as macroeconomic conditions remain unfavorable.
Bitcoin ETFs Inflows Seem Headed to Rise by 400% This Month
Turning to on-chain and Bitcoin-specific data, exchange-traded funds (ETFs) linked to the top crypto saw $350 million in net outflows last week, indicating that investors are still skeptical about the token’s chances to rally.
