Markets weigh a potential September Fed rate hike as June PCE inflation hits a three-year high of 4.1%.
Bitcoin (BTC) faces volatility as traders monitor the Federal Reserve’s interest rate decision and June PCE inflation data. The Fed’s Wednesday announcement follows a spike in US bond yields, with markets pricing a 50% chance of a September rate hike.
June’s PCE inflation reached 4.1%, a three-year high, while the 2-year Treasury yield climbed to 4.3%. The CME Group’s FedWatch Tool shows a 31% probability of a hike this week. Geopolitical tensions and shifting equities trends add to uncertainty.
Whale exchange inflows dropped 44% since June, signaling reduced selling pressure. Investors remain divided on the Fed’s rate path, with oil price fluctuations further complicating expectations.