Bitcoin Breakout Cools as Fed Rate-Hike Bets Climb

In brief

• Bitcoin trades near $84,490, down from Monday's $87,397 high, as CME FedWatch data puts October rate-hike odds at roughly 75% and December odds near 59%.
• BNB and Solana are the only two of the top 10 cryptocurrencies posting 24-hour gains, up 2.75% and 2.31% respectively, while Ethereum, XRP, Zcash and Hyperliquid cool off.
• Crypto derivatives show $348.33 million in liquidations today, split between $270.89 million on the long side and $77.43 million on the short side.

Bitcoin traded near $84,490 Thursday, down from the $87,397 high it touched Monday, as traders price in higher odds that the Federal Reserve raises rates again next month.

The pullback follows a rally that carried Bitcoin from the mid-$70,000s to an eight-month high in under a week. Inflation concerns have pushed October rate-hike odds to roughly 75%, with December odds near 59%, according to CME's FedWatch tool.

A rate hike means higher borrowing costs across the economy, and it typically strengthens the dollar while lifting returns on cash and government bonds. That makes non-yielding, volatile assets like Bitcoin less attractive by comparison.

Higher rates also tend to squeeze market liquidity and raise the cost of leveraged trading, both of which have historically weighed on crypto prices during tightening cycles.