Bitcoin trades under $77,000 as investors digest the Federal Reserve's hawkish rate hike, with prediction markets signaling a 51% chance of a further decline to $75,000 amid 'Rektember' market volatility.
Bitcoin is trading below $77,000 with Polymarket assigning roughly 51% odds of a slide to $75,000 this month, pressured by the Fed's rate hike and hawkish signal.
Bitcoin faces short-term downward pressure as Polymarket traders assign a 51% probability of the asset sliding to $75,000 this month. The Federal Reserve's recent quarter-point rate hike has dampened appetite for non-yielding assets, ending a period of monetary policy stability and signaling a hawkish path through 2027.
Higher interest rates increase the yield on safer assets and strengthen the US dollar, making non-yielding assets like Bitcoin less attractive to investors.