Traders anticipate Fed rate hike as Bitcoin falls
Traders are now predicting a 94% chance of the Federal Reserve raising interest rates by 25 basis points later this month. Bitcoin (BTC) also experienced a drop, falling to $30,600 after reaching a 13-month high of $31,500. The drop was partly caused by a positive U.S. ADP private employment report, which showed that 497,000 private-sector jobs were added in June, surpassing the forecast of 220,000. This data overshadowed a labor market report that indicated some weakness, with initial jobless claims increasing to 248,000. The rise in Treasury yields following the ADP report suggests that traders expect the Fed to continue its rate hike campaign. In fact, traders are now predicting a 94% chance of a rate hike this month and a 75% chance of three additional hikes by the end of the year.
- Traders anticipate a 94% chance of a 25 basis point rate hike by the Federal Reserve this month.
- Bitcoin falls to $30,600 after reaching a 13-month high of $31,500.
- The U.S. ADP private employment report shows that 497,000 private-sector jobs were added in June, exceeding the forecast of 220,000.
- Treasury yields rise following the ADP report, suggesting expectations of further rate hikes by the Fed.
- Traders expect three additional rate hikes by the end of the year.
Hot Take: The anticipation of a rate hike by the Federal Reserve has caused a drop in Bitcoin and negative reactions in stock markets. Traders are closely watching for any further developments in monetary policy that could impact the markets.
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