Odds of September Fed rate hike drop to 50/50, Bitcoin rallies past $80,000 amid easing hawkish bets.

Market expectations for a September Federal Reserve rate increase have moved to an even split, with the odds of a hike falling to 50/50, according to Pluang. The shift signals easing expectations for a more hawkish policy move from the U.S. central bank.

Bitcoin rallied above $80,000 as expectations for a September rate hike softened. Crypto markets often react to changes in interest-rate expectations because monetary policy can influence broader appetite for risk assets, liquidity conditions, and the relative appeal of non-yielding assets such as Bitcoin.

The Federal Reserve’s rate decisions remain closely watched across global financial markets. A less hawkish outlook does not determine future policy, and expectations can change as economic data and central-bank communications develop. Bitcoin, meanwhile, remains a highly volatile asset and can respond sharply to shifts in macroeconomic sentiment.