Key Takeaways
UBS now expects two Fed rate hikes this year, extending Bitcoin's macro headwind through December.
According to CryptoSlate, UBS Global Wealth Management now forecasts quarter-point Federal Reserve rate hikes in both September and December, reversing its previous expectation of no policy changes this year. Reported by Reuters on Sept. 7, UBS cited strong August labor data, hawkish Fed communication, and inflation risks from supply bottlenecks. Futures markets priced in a roughly 58% chance of a hike at the Sept. 15-16 meeting.
The Bureau of Labor Statistics reported that employers added 162,000 jobs in August, while unemployment held at 4.1%. This labor market resilience gives policymakers room to focus on inflation. For Bitcoin, higher rate expectations can support Treasury yields and dollar assets, raising the opportunity cost of holding a non-yielding asset and pressuring risk appetite through year-end. Governor Christopher Waller previously noted that hot August inflation could prompt a hike. The upcoming August CPI release on Sept. 11 will test whether inflation keeps the December hike in play. Around 14:02 UTC on Sept. 7, Bitcoin traded around $79,375, down 1.38% over 24 hours.
Source & Fact-Check Note
This report is synthesized from coverage by CryptoSlate. Information has been fact-checked and structured for market clarity by CoinQuickly’s research desk.
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