Summary
- Federal Reserve expectations for a December rate hike increased, sending both Bitcoin and gold prices lower.
- Markets have begun pricing in a 25-basis-point rate hike at the December FOMC, which would raise the benchmark rate from 4.00% to 4.25%.
- Bitcoin fell more than 1% and traded near $74,000, while gold prices also dropped more than 1% to below $4,100 an ounce.
Forecast Trend Report by Period
Bitcoin and gold prices fell together as expectations grew for a December interest-rate increase by the Federal Reserve.
CoinDesk reported on November 10 that markets have begun pricing in a 25-basis-point rate hike at the Federal Open Market Committee meeting on December 9. If that happens, the target range for the benchmark interest rate would rise from 4.00% to 4.25%.
Federal Reserve Governor Christopher Waller said he supports a December rate increase even if inflation slowed last month. A 50-basis-point hike is also possible if inflation data comes in higher than expected, he added.
As expectations for higher rates strengthened, both risk assets and haven assets weakened. Bitcoin fell more than 1% and traded near $74,000, while gold also dropped more than 1% to below $4,100 an ounce. Nasdaq 100 futures gave back part of the previous day's gains and edged lower, while the dollar index remained firm below 102.
Separately, artificial intelligence company Anthropic withdrew pricing information distributed to banks in connection with its initial public offering that day. Reuters reported that the document said the company planned to offer about 867 million shares at $70 to $80 apiece, raising as much as $69.3 billion. Anthropic said the information was inaccurate and signaled it would issue a corrected filing.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.