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🔥BULLISH

October Fed Rate Hike Odds Plunge From 66% to 22%

A 44-percentage-point shift reduces the rate-hike risk priced into markets, a meaningful change for investors tracking Bitcoin and other risk assets.

Market-implied odds of an October Federal Reserve rate hike fell from 66% to 22% this week, a 44-percentage-point repricing. The shift changes how investors are pricing the next move in US monetary policy; it is not a Fed decision.

Why it matters

Interest-rate expectations shape the backdrop for Bitcoin and other risk assets. Lower odds of a hike ease one potential source of pressure, though the new probability still leaves an October increase on the table.

Market impact

For Bitcoin investors, the question is whether the repricing holds. A move back toward higher hike odds would change the rate outlook again, even without a change in Fed policy.

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$BTC

Frequently asked questions

  1. How far did market-implied October Fed hike odds fall?

    They fell from 66% to 22% this week, a decline of 44 percentage points.

  2. Does the drop in hike odds mean the Fed has ruled out an October increase?

    No. The figures reflect market pricing, not a Federal Reserve decision. A 22% implied probability still leaves a hike on the table.

  3. Why does the repricing matter for Bitcoin?

    Interest-rate expectations affect the backdrop for Bitcoin and other risk assets. Lower hike odds ease one potential source of pressure.

  4. Did Bitcoin rise as hike odds fell?

    The reported repricing does not establish a Bitcoin price move or a direct market reaction.

  5. What would change the rate outlook for investors?

    A renewed rise in market-implied October hike odds would shift the rate outlook again, even without a change in Fed policy.

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Aggregated from Glassnode · Verified · Last refreshed 1h ago
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