Cryptocurrencies Stay Elevated as Odds of Interest Rate Hike Soar — Market Talk

Major cryptocurrencies have maintained their higher levels through the day, even after the firm CPI report sent odds for a quarter-point rate hike this month up to 87%. But macro markets appear to have largely priced this expectation in, says Jonas Goltermann of Capital Economics in a note. "It would probably take a very hawkish message from Chair Warsh and the FOMC to send Treasury yields much higher, give the dollar a major boost, or derail the equity market next week," says Goltermann. Cryptocurrency has been under pressure this year as investors seek other opportunities like AI stocks — which may get one more boost on the heels of a rate hike, says Goltermann. Bitcoin is up 0.2%, ethereum rises 4%, and XRP is up 0.6%. ([email protected])