Bitcoin Consolidates; Fed Rate Hike Expectations May Weigh

Dow Jones09-07 10:29

0229 GMT - Bitcoin consolidates in Asia and is last at $79,934.60. U.S. payrolls increased well above expectations in August, raising expectations of a Fed rate hike later this month. Higher borrowing rates tend to weigh on risk appetite, dragging cryptocurrencies. The market continues to face risks including geopolitical tensions between the U.S. and Iran, says Antonio Di Giacomo at XS.com. A renewed escalation could push energy prices higher, raising inflation concerns and triggering further moves in bond yields and interest-rate expectations. "Such a scenario could generate additional volatility in bitcoin and, particularly, in altcoins, which tend to experience considerably larger percentage swings during periods of uncertainty," he says.

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