Bitcoin Breakout Cools as Fed Rate-Hike Bets Climb

Bitcoin has fallen below $85,000 after reaching an eight-month peak near $87,400 last week. This cooling of the rally follows increasing expectations of a Fed rate hike in October. Fed officials have signaled potential hikes due to persistent inflation concerns. Such actions could tighten financial conditions, which would likely impact overall economic growth, consumer spending, and borrowing costs. The market reaction reflects the rising odds of these monetary policy adjustments by the Fed.