Fed Rate Hike Odds Surge to 87% as Bitcoin Holds $77K

Markets are recalibrating quickly ahead of the Federal Reserve policy meeting scheduled for September 15 and 16. Investors now price in an 87% chance of another interest rate hike, driven by fresh August consumer price index data that showed inflation running stubbornly above the central bank's 2% target.

Higher borrowing costs usually create headwinds for risk assets by draining liquidity from financial markets and making safe cash yields more attractive. With Bitcoin currently trading near $77,256, traders are closely watching how the crypto market will hold up if borrowing costs climb again.

All eyes are now locked on the upcoming FOMC decision. If the Fed confirms another hike, digital assets could face a renewed test of resilience as macro pressures weigh on market sentiment.