Bitcoin recovers above $82,000 as Fed comments lower rate hike expectations
CIE News ·
Based on reporting by crypto.news; not yet independently confirmed.
Bitcoin rebounded past $82,000 after dovish Federal Reserve comments lowered the odds of an October rate hike to 32%, offsetting hotter wholesale inflation data.
Bitcoin (BTC) recovered above $82,060 on October 16 after Federal Reserve officials calmed investor concerns over immediate interest rate increases, blockhead.co reported. The cryptocurrency had previously declined by 3.6% to a low of $80,443 following U.S. Bureau of Labor Statistics data showing the September Producer Price Index rose 1.3% month-over-month and 6.3% annually, according to crypto.news.
Market expectations for an interest rate hike at the upcoming October 27–28 Federal Open Market Committee meeting declined after public remarks from policymakers. Fed Governor Michelle Bowman stated that the central bank had time to assess market responses to September's 25-basis-point increase, which set the federal funds target range at 3.75% to 4%. San Francisco Fed President Mary Daly indicated there was no urgency to act, blockhead.co reported.
Following these remarks, the probability of an October rate increase implied by fed funds futures dropped from 54% to 32%, according to the CME FedWatch tool cited by blockhead.co. The 10-year U.S. Treasury yield fell to 5.08%, while Ether (ETH) gained 1.1% to trade around $2,436.
Key facts
- BTC recovered above $82,060
- September PPI rose 1.3%
- October rate hike odds fell to 32%
- 10-year Treasury yield hit 5.08%
Read the original at crypto.news