Bitcoin Holds Support as Oil Shock Revives Fed Hike Bets

Fed hike bets — Bitcoin held steady above key support levels on Tuesday while traditional stocks stalled, as a spike in oil prices renewed investor concerns about potential Federal Reserve interest rate hikes.

The leading cryptocurrency remained resilient, trading in its so-called ‘golden zone’ of support, even as the S&P 500 index traded within its tightest range of the year. Market participants are largely in a holding pattern, awaiting the release of the latest Consumer Price Index inflation data on Friday.

That report is the last major economic indicator before the Federal Open Market Committee meets on September 16 to decide on monetary policy. The recent surge in oil prices has injected fresh volatility into inflation expectations, complicating the Fed’s path and keeping traders on edge.

The contrasting performance highlights a potential decoupling, with Bitcoin showing relative strength against a backdrop of traditional market anxiety. Analysts suggest the crypto asset’s price action will be heavily influenced by the inflation print and the subsequent Fed decision.