Bitcoin price tries to hold on to $20,000

Bitcoin (BTC) hovered around $20,000 on August 31, as the course of US inflation gave negative signals.

Cointelegraph Markets Pro and NewsOfFinanceAccording to data from BTC/USD, overnight again, it fell below the last halving cycle peak, but reached $20,300 again during the day.

The S&P 500 and Nasdaq Composite Indices rose 0.15 percent and 0.6 percent, respectively, in the first hours of the day, showing US stocks rebounding slightly.

Concerns about the Federal Reserve’s anti-inflationary plans remained high on the agenda after President Jerome Powell’s gloomy speech last week.

Also, all the attention was on the dollar, which recorded two-year highs.

“Having a stable or weak dollar is very important as upside pressure can be expected in the markets for risky assets, including Bitcoin,” Michaël van de Poppe, CEO of Eight Global trading company, told Twitter followers. used.

“Next month is a critical time for the US Dollar Index (DXY). And this potential bearish bias could also be the first signal.”

Bitcoin price tries to hold on to $20,000
US Dollar Index (DXY) 1-hour candlestick chart. Source: NewsOfFinance

Markets and Fed rate hikes

Usually a red candle month for Bitcoin, September promised a key Fed decision on key rate hikes, along with August’s Nonfarm Payrolls (NFP) and Consumer Price Index (CPI) inflation data.

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CME Group FedWatch ToolAccording to the data from , expectations supported a 75 basis point increase in July in the next month.

“Markets are back to trading at FOMC rates on Sept. 21, rather than looking at larger interest path or terminal value. Whether they raise the rate by 50 or 75 basis points,” trading firm QCP Capital told Telegram channel subscribers in its latest market update.

QCP also noted that additional impetus for a larger rate hike could be due to the longer-than-normal gap between the July correction and September, thanks to the August recession.

Interest rate hike decisions are normally made monthly.

Bitcoin price tries to hold on to $20,000
Fed’s target rate probability chart. Source: CME Group

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