Goldman Sachs Predicts Fed's Decision Impact on Bitcoin

Analysts at Goldman Sachs assess that a rate hike by the Fed in September is unlikely. Chief economist Jan Hatzius points to weaker data from the U.S. economy, which reduces the chances of further tightening of monetary policy. In particular, this concerns retail sales indicators and labor market data. Hatzius notes that current interest rate valuations are too hawkish. The level of interest rates affects the availability of credit and currency liquidity, which in turn impacts demand for risky assets such as Bitcoin. Historically, cycles of rate hikes have slowed this market, while stabilization or cuts in rates have favored price increases. Currently, the probability of a 25 basis point rate hike stands at 30.6%, and Bitcoin is trading around $63,500, with a slight increase of 1%. The cryptocurrency price remains in the range of $62,000 to $66,000. Market pressure to lower rates may accelerate the inflow of capital into alternative assets, and an improvement in inflation indicators could force the Fed to ease its policy. The behavior of U.S. macroeconomic indicators in the coming weeks will determine the direction of the cryptocurrency market.

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