What Happens to Bitcoin if the Fed Raises Rates in July?
With the latest Consumer Price Index data for June already out, all economic eyes have now turned to the United States Federal Reserve and the upcoming FOMC meeting scheduled for the end of July. Although inflation has cooled, there are still those pushing for an interest rate hike during the next meeting. The question is: what could happen to $BTC and its price stagnation if thats the case? Big Macro Test Ahead? The odds declined over the past week or so after the June inflation data showed a substantial drop to 3.5%. While that might be more misleading than it sounds, given the fact that oil prices are up in July due to the ceasefire breakdown, data from CME FedWatch show that experts believe theres an 85% probability that policymakers will leave rates unchanged. In contrast, the odds of a 25-basis-point increase stand at a more modest 15%. Those odds shifted after the CPI announcement on Tuesday given the softer-than-expected reading, which reinforces the markets expectation that the Fed will not pivot on its current strategy. Nevertheless, there are some who continue to sound increasingly hawkish, including new Fed Chair Kevin Warsh and Dallas Fed President Lorie Logan. Higher interest rates have been seen as