Goldman Sachs Predicts Fed Rate Hike as Bitcoin Price Lags

Goldman Sachs changed its stance on the Federal Reserve this week. After previously predicting that interest rates would remain steady through 2026, the firm now expects a 25 basis point hike. This sudden reversal comes after recent inflation data exceeded expectations, pushing the probability of a rate increase to over 86 percent.

This shift creates a difficult environment for risk assets like Bitcoin. The leading cryptocurrency has been hovering below the 80,000 dollar mark, and higher interest rates typically encourage investors to move money toward safer, yield bearing assets rather than volatile digital coins.

Traders are now watching the Federal Reserve closely to see if they follow the bank's prediction. If the Fed does decide to tighten policy, it could lead to further price consolidation for Bitcoin in the short term. Markets will remain sensitive to any official announcements in the coming days.