Bitcoin under pressure: why September 16 worries investors
September 16 could become a decisive day for Bitcoin and the financial markets. A possible rate hike from the Fed, new trade threats from Donald Trump and regulatory uncertainties surrounding cryptocurrencies in the United States could cause renewed volatility.
A Fed decision that could surprise the markets
September 16 is shaping up to be a high-risk date for Bitcoin, cryptocurrencies and financial markets as a whole. That day, the US Federal Reserve will make its decision on rates following the meeting of the Federal Open Market Committee (FOMC).
The day before, a key procedural vote on the CLARITY Act is also scheduled to take place in the U.S. Senate. Added to these two meetings is the growing pressure exerted by Donald Trump on the Fed, with the threat of suspending certain trade if the central bank refuses to lower its rates.
The markets are now preparing for a scenario that they still considered unlikely a few weeks ago: a new increase in American rates.
The August jobs report reinforced this hypothesis. The American economy created 162,000 jobs, well above the approximately 55,000 expected by economists, while the unemployment rate remained stable at 4.1%. Result: The probability of a 25 basis point hike at the September 16 FOMC meeting increased from approximately 49.4% to 60.4% in 24 hours, according to CME FedWatch.
Rising rates could support the dollar and push U.S. Treasury yields higher, two moves that are generally unfavorable for risky assets like tech stocks and Bitcoin.
The price of Bitcoin is currently trading around $79,707, down 1.87% over 24 hours. Further monetary tightening could therefore accentuate downward pressure in the short term.
