Bitcoin

Crypto has increasingly traded as a macro-sensitive asset, with Bitcoin and altcoins highly correlated to liquidity conditions and real interest rates. A potential Fed rate hike would tighten financial conditions, reducing speculative appetite and pressuring digital assets. This event highlights the ongoing dependency of crypto on central bank policy, even as the market narrative shifts toward adoption and regulation.

Renaissance Macro's Neil Dutta stated that upcoming inflation data is critical and could keep a September Fed rate hike in play despite market expectations for the Fed to hold.