Bitcoin Falls to $76,800 as Fed Rate-Hike Bets Rise
Bitcoin traded near $76,840, down 0.58% in 24 hours, as stronger-than-expected US inflation increased expectations of a 25-basis-point Federal Reserve rate hike. Bitcoin has fallen from its recent 14-day high of $81,731, while Ethereum dropped 1.69% to about $2,483. Solana fell 2.52% to $99.56, losing the key $100 level, and XRP declined 1.58% to $1.3448.
Crypto liquidations reached $278.54 million over the past 24 hours, affecting 114,337 traders. Long positions accounted for $195.98 million of the total, showing that bullish traders suffered most. The largest single liquidation was a $4.46 million ETHUSDT position on Binance.
The market reacted to August US CPI data, with headline inflation rising 3.4% year on year and core CPI increasing 0.3% month on month, above expectations. US spot Bitcoin ETFs recorded about $462.7 million in net outflows from 8 to 11 September, suggesting more cautious institutional positioning ahead of the FOMC decision.
Bitcoin remains below its 20-day moving average, with momentum indicators turning bearish and price near the lower Bollinger Band. Key support levels are around $75,994 and $71,193, while resistance stands near $78,491 and $80,988. The Fear and Greed Index fell to 57 but remained in the greed zone. Traders are focused on the FOMC rate decision, updated projections and guidance on future inflation and monetary policy.
Bearish
The immediate market impact is bearish. Higher-than-expected core CPI has increased expectations of a Federal Reserve rate hike, raising Treasury yields and the opportunity cost of holding non-yielding assets such as Bitcoin. Crypto markets typically face short-term selling pressure when monetary policy expectations become more restrictive, particularly ahead of an FOMC decision.
The $278.54 million in liquidations, with long positions accounting for most losses, indicates that leverage remains a significant source of downside risk. Bitcoin is also trading below its 20-day moving average, while MACD momentum has weakened and price is near the lower Bollinger Band. ETF net outflows add evidence that institutional investors are reducing exposure or waiting for greater policy clarity.
Short-term volatility could intensify around the FOMC statement, rate projections and policymakers’ comments. A hawkish outcome could push Bitcoin towards support near $75,994 and potentially $71,193, while a dovish surprise or easing inflation outlook could trigger a relief rebound above $78,491. Similar periods of pre-Fed positioning have often produced sharp two-way moves and leveraged liquidations rather than a smooth trend.
Over the longer term, the impact will depend on whether inflation continues to slow and whether ETF flows recover. Persistent outflows and tighter financial conditions would remain a headwind, while renewed institutional inflows and stable rates could support Bitcoin and broader crypto recovery.