Bitcoin falls 4% below $83,000 as Fed rate hike fears surge

Bitcoin falls — Bitcoin fell sharply on October 7, dropping 4% to trade below $83,000, as markets reacted to heightened expectations for another Federal Reserve interest rate hike this year.

The sell-off was triggered by the release of minutes from the Federal Open Market Committee’s September meeting, which indicated that a majority of members see at least one more rate increase as likely in 2026. The hawkish tone from the Fed pushed U.S. Treasury yields higher, pressuring risk assets including cryptocurrencies.

Ether underperformed Bitcoin during the session, losing 6% after analyst Tom Lee stated that mining firm Bitmine would soon halt its purchases of additional ETH. The broader crypto market followed the leading assets lower amid the risk-off sentiment.

Prices edged up slightly from their worst levels of the day as bond yields pulled back later in the session, but Bitcoin remained firmly in negative territory. The move highlights the continued sensitivity of digital assets to traditional macroeconomic forces and central bank policy expectations.