Bitcoin (BTC) and other cryptocurrencies are sinking to end the week as the odds of an interest rate hike in the U.S. steadily rise.
Futures markets now see a 70% chance that the U.S. Federal Reserve raises interest rates 25-basis points at its next meeting on Sept. 16.
That’s up from 50% odds of a rate increase at the start of the month.
Markets are ratcheting up their expectations for higher interest rates as crude oil prices steadily rise with fighting between the U.S. and Iran worsening.
Over the past week, the price of crude oil rose back above $100 U.S. a barrel for the first time since May of this year.
Rising energy prices are leading to inflation throughout the U.S. economy, requiring the central bank to lift interest rates to lower consumer prices.
Higher interest rates are negative for risk assets such as cryptocurrencies and stocks.
Consequently, Bitcoin was trading at $76,980 U.S. early on Sept. 11, down from as high as $82,000 U.S. at the start of September.
Other digital assets are also in retreat, with Ethereum’s (ETH) price back below $2,500 U.S. XRP (XRP) and Solana (SOL) are also in the red to end the week.
Despite the current pullback, cryptocurrency prices remain sharply higher than where they were a month ago, when Bitcoin was trading below $65,000 U.S.
Several prominent leaders in the crypto sector, including Coinbase Global (COIN) CEO Brian Armstrong, have said that they believe Bitcoin has now bottomed and the worst of the “crypto winter” that began last autumn is now over.
The price of BTC peaked at an all-time high of $126,198.07 U.S. on Oct. 6, 2025.
