Bitcoin dropped 2.8% to $83,198.5 on Wednesday after Federal Reserve minutes showed most policymakers expect another rate hike this year. Rising bond yields and higher oil prices added further pressure, while most other major cryptocurrencies also fell.
Bitcoin slipped on Wednesday after the latest Federal Reserve minutes showed that most policymakers saw another interest rate hike this year. The world's largest crypto fell 2.8% to $83,198.5 by 17:46 ET, having traded largely rangebound in October after a strong third quarter.
Risk sentiment stayed subdued as elevated yields and oil prices weighed on the broader market. Hopes for more crypto-friendly U.S. regulation did little to spur risk appetite, and crypto has largely lagged record highs on Wall Street as investors favor artificial intelligence stocks.
Fed minutes point to another rate hike this year
Crypto traders focused on minutes from the Fed's September policy meeting, which showed most Federal Open Market Committee participants expected another rate increase by year end. The FOMC had unanimously voted last month to raise the federal funds rate by 25 basis points, the first hike in over three years.
According to the minutes: "another increase in the target range for the federal funds rate would likely be appropriate". Higher rate environments tend to weigh on speculative assets such as cryptocurrencies. Yet odds of a hike later this month have fallen sharply since September, and the CME FedWatch tool put the probability of a steady rate at nearly 83%, down from about 54% a month ago.
Yields and oil add to the pressure
A resurgence in the U.S. bond market rout also weighed on bitcoin, though the sell-off eased in the afternoon after a $39 billion 10-year Treasury auction traded at the highest yield for such an auction since November 2000, showing strong demand for government debt.
Oil prices swung between gains and losses, with Brent crude settling 0.6% higher at $101.17 a barrel. Oil initially rose on supply concerns tied to attacks on ships in the Strait of Hormuz and fighting between Iran-backed Houthis and Yemen's Saudi-backed government, before the International Energy Agency agreed to speed up the release of oil stocks.
OKX raises funds as Robinhood adds bitcoin
Crypto exchange OKX said it completed a strategic investment at a $25 billion pre-money valuation from Circle, Qube Research, Ripple, and Standard Chartered. Separately, Robinhood bought $25 million of bitcoin for its balance sheet, a move it said reflects its commitment to the crypto sector.
Altcoins drift lower with bitcoin
Broader crypto prices mostly fell alongside bitcoin. Ether dropped 4.8% to $2,568.51. XRP shed 5.8%. Solana and Cardano lost 4.6% and 5.6%, respectively, and BNB dipped 1.3%.
Source: Cryptocurrency News
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