What happened
Bitcoin fell 0.7% to approximately $US78,751 after trading between $US77,680 and $US79,432. The decline followed rising crude oil prices and stronger US economic indicators, which prompted money markets to price in a 57% probability of a Federal Reserve interest rate increase at its upcoming meeting.
Why it matters here
Because cryptocurrencies generate no income yield, rising interest rates increase the appeal of cash and government bonds while curbing leveraged risk-taking. However, net inflows into spot Bitcoin exchange-traded funds indicate that institutional investors continue accumulating assets despite macroeconomic headwinds.
What to watch
Watch the US Federal Reserve rate decision on September 16 and key inflation releases for signals on global crypto market liquidity.
Source
proactiveinvestors.com.au