Why Bitcoin initially held its gain as rate traders put September hike odds at 85%

What happened

Bitcoin initially kept its price gain even as traders raised the chance of a September interest-rate hike to 85%. August inflation rose mainly due to gasoline, but faster core inflation, which excludes food and energy, supported a warning from Fed official Waller.

Confirmed

Global impact / market context

Higher interest rates make borrowing costlier, which can reduce spending and investment. If the Fed hikes, riskier assets like Bitcoin may face selling pressure because investors could shift to safer options. Core inflation staying high keeps that risk alive.

Analyst inference

Bitcoin's initial resilience suggests traders weighed gasoline as temporary, but core inflation signals broader price pressure. An 85% September hike probability shows markets expect tighter policy, which historically can reduce demand for speculative assets. The balance between inflation data and rate expectations drives crypto moves.

Analyst inference

What to watch

1. Watch whether Bitcoin continues holding its gain or starts falling as the September hike odds stay at 85%. The article confirms these odds but not Bitcoin's later price action. Confirmed
2. Monitor upcoming inflation reports to see if core inflation stays elevated or cools, since the article ties Waller's warning to faster monthly core inflation. Proposed
3. Expect possible Bitcoin volatility if the Fed confirms the hike, because higher borrowing costs may reduce investor appetite for risk assets like cryptocurrency. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• cryptoslate.com