Goldman Sachs "Interest rates will rise again in October"...Bitcoin (BTC) on alert

▲ US interest rates, Bitcoin (BTC)/AI-generated image

The virtual asset market has encountered a new challenge as Goldman Sachs forecasts an additional interest rate hike by the Federal Reserve (Fed) in October.

According to the cryptocurrency media outlet Coingape on September 17 (local time), Goldman Sachs revised its outlook, predicting that the Fed would further raise the benchmark interest rate by 0.25 percentage points in October, following September. Initially, it was expected that the Fed would maintain a freeze after the September hike, but the forecast was completely reversed after the Fed raised rates from 3.75% to 4.00% and issued strong hawkish signals. The market's caution against tightening increased, with the probability of an additional rate hike in October exceeding 50% on the CME FedWatch.

The Fed's firm stance was a decisive factor in this change in outlook. A majority of Fed members indicated the possibility of at least one more rate hike this year through the dot plot. Fed Chairman Kevin Warsh stated at a press conference, "Inflation is still too high," and "This rate hike is a partial removal of monetary accommodation," not hiding his intention for further tightening.

The virtual asset market is facing short-term liquidity contraction pressure. Amid a strengthening dollar and rising US Treasury yields leading to stock market corrections, Bitcoin (BTC) is holding steady near the $76,000 mark without establishing a clear direction. However, if the impact of the interest rate hike prolongs, it is pointed out that a general price correction beyond a defensive trend will be inevitable.

Market experts diagnose that market volatility could fluctuate significantly depending on future economic indicators. Whether Bitcoin can absorb the shock by maintaining the $76,000 support level will be the test to determine the virtual asset market's resilience in the face of further interest rate hikes.

[Key Article Summary]

-Goldman Sachs revised its forecast, expecting the Fed to further raise the benchmark interest rate by 0.25 percentage points in October, following September.

-The Fed's hawkish dot plot and Chairman Warsh's warning about high inflation fueled bets on further tightening.

-Amid a strong dollar and rising bond yields, Bitcoin is absorbing short-term liquidity pressure around the $76,000 mark.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*