Bitcoin price slipped toward $74,000 on Tuesday after Federal Reserve governor Christopher Waller said he would vote for a 0.25% interest rate hike at the Federal Open Market Committee’s December meeting, and US stock futures also trended lower.
Data from TradingView showed BTC/USD at $74,080 on Bitstamp, down 1.3% on the day. Waller said September’s inflation data were “bad” and that a hike would remain his view even if October readings improve. The Fed’s preferred gauge, the PCE index, rose 0.5% month-on-month and 3.7% year-on-year in September. After his remarks, CME Group’s FedWatch Tool showed odds of a December hike jumping from 76.3% to 96.3%. The Bureau of Labor Statistics said the October CPI release will include only month-on-month figures because of the 2025 US government shutdown.
Tighter monetary policy usually reduces liquidity, and that can weigh on bitcoin and other risk assets as capital inflows slow. Traders are also watching the October CPI release, expected to show a 0.3% monthly increase after 0.6% in September, as a test of whether the rate outlook shifts.
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Tighter-policy expectations are a headwind for bitcoin, since they point to less liquidity, but Waller is one voter on the committee, so the December outcome is still uncertain.
Source: Cointelegraph