Biggest Fed rate hike in 40 years? 5 things to know about Bitcoin this week

The Fed is preparing an inflation move that could act as a "sledgehammer" for crypto and risk assets. Market news
Bitcoin (BTC) faces another week of “huge” macro news after the lowest weekly close since July.

After days of losses following the latest US inflation data, BTC/USD, like altcoins and risk assets more broadly, has failed to rally.

The biggest cryptocurrency has yet to return $20,000 to convincing support, and as the third full week of September begins, the danger is once again that this level could function as resistance.

Bulls have cause to worry: the next few days will see the Federal Reserve deciding the next key rate hike, which will affect the market far beyond sentiment.

Furthermore, the aftermath of the Ethereum (ETH) merger continues to play out, while at former exchange Mt. Gox, repayments to creditors add another potential cloud to the Bitcoin price landscape.
Cointelegraph examines five potential market movers to watch in Bitcoin over the coming week.
Fed rate hike 'hammer' in focus
The main event of the week comes in the form of the Federal Reserve's decision on key interest rates.

After August's Consumer Price Index (CPI) turned "hotter" than expected, the Fed will be under pressure to react.

As such, the market has now fully priced in a minimum 75 basis point hike for the fed funds rate and is not ruling out the 100 basis point chance, according to CME tool FedWatch as of September 19.

A 100-point hike would be the first such Fed action since the early 1980s.

Fed Target Rate Probability Chart as of September 1. 19, 2022. Source: CME Group
The Federal Open Market Committee (FOMC) is due to meet September 20-21 and will issue a joint statement...

Crypto Sep 19, 2022 0 65 Add to Reading List

Biggest Fed rate hike in 40 years? 5 things to know about Bitcoin this week

The Fed is preparing an inflation move that could act as a "sledgehammer" for crypto and risk assets. Biggest Fed rate hike in 40 years? 5 things to know in Bitcoin this week Market news

Bitcoin (BTC) faces another week of “huge” macro news after the lowest weekly close since July.

After days of losses following the latest US inflation data, BTC/USD, like altcoins and risk assets more broadly, has failed to rally.

The biggest cryptocurrency has yet to return $20,000 to convincing support, and as the third full week of September begins, the danger is once again that this level could function as resistance.

Bulls have cause to worry: the next few days will see the Federal Reserve deciding the next key rate hike, which will affect the market far beyond sentiment.

Furthermore, the aftermath of the Ethereum (ETH) merger continues to play out, while at former exchange Mt. Gox, repayments to creditors add another potential cloud to the Bitcoin price landscape.

Cointelegraph examines five potential market movers to watch in Bitcoin over the coming week.

Fed rate hike 'hammer' in focus

The main event of the week comes in the form of the Federal Reserve's decision on key interest rates.

After August's Consumer Price Index (CPI) turned "hotter" than expected, the Fed will be under pressure to react.

As such, the market has now fully priced in a minimum 75 basis point hike for the fed funds rate and is not ruling out the 100 basis point chance, according to CME tool FedWatch as of September 19.

A 100-point hike would be the first such Fed action since the early 1980s.