Goldman Sachs · Federal Reserve (FED) · CME Group · Bitcoin.com News
Goldman Sachs Flips to a Rate Hike as Bitcoin’s Price Stalls Under $80,000
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Goldman Sachs abandoned its forecast that the Federal Reserve would hold rates through 2026 and now expects a 25-basis-point increase next week, days after a hotter-than-expected inflation print pushed hike odds above 86%.
Key facts
- Goldman Sachs abandoned its forecast that the Federal Reserve would hold rates through 2026 and now expects a 25-basis-point increase next week, days after a hotter-than-expected inflation print
- The timing was not coincidental either, as bitcoin ran to an intraday high of $79,505 earlier today before fading to its current range of $77,200, and a rate hike generally precedes a risk-off
- August’s core consumer price index (CPI) inflation, which strips out food and energy, rose 0.3% month-on-month against a 0.2% consensus
- Bitcoin’s chart came close to telling a different story the same day as its daily 50-day exponential moving average (EMA) briefly pushed above the 200-day EMA, the crossover traders call a golden
Summary
Goldman Sachs moved from a hold call to a 25-basis-point hike for Sept. 16 after August core CPI hit 0.3%. CME Fedwatch odds for a September increase climbed from roughly 69% to 86.5% within hours of the data. Bitcoin’s 50-day average crossed above its 200-day line on Sept. 11, then slipped back under the same day. As recently as July 31, Goldman Sachs was the loudest institutional voice arguing the Fed would sit still.