Bitcoin pulled back and formed a risky pattern this week as market participants pared back their Federal Reserve interest rate cut expectations.Bitcoin pulled back and formed a risky pattern this week as market participants pared back their Federal Reserve interest rate cut expectations.

Bitcoin price derails as Polymarket Fed interest rate cut odds fall

3 min read

Bitcoin pulled back and formed a risky pattern this week as market participants pared back their Federal Reserve interest rate cut expectations. 

Summary
  • Bitcoin price pulled back after the hot producer price index data.
  • Polymarket odds of Federal Reserve cuts have fallen in the past few days.
  • Technical analysis points to more downside before an eventual rebound.

Bitcoin (BTC) retreated from the all-time high of $124,420 to $117,760 at last check Saturday, Aug. 16. Its market cap is $2.34 trillion, down from a peak of $2.47 trillion. This decline coincided with the declining odds of Federal Reserve cuts amid concerns about stagflation.

Fed Chair Jerome Powell, much to President Trump’s dismay, views a strong labor market as one paired with stable prices. Currently, that balance is lacking in the U.S., where tariffs enacted on Aug. 7 are driving up costs as companies pass import duties onto consumers.

Bitcoin pressured by falling Fed cut odds

BTC price jumped to a record high of $124,420 on Aug. 14 after the Bureau of Labor Statistics published an encouraging consumer inflation report. While the core Consumer Price Index rose to 3.1%, the headline figure remained unchanged at 2.7%.

The sentiment changed a day later after the producer price index data soared to 3.6% in July. This report led to jitters about whether the Fed would cut interest rates in September, as many analysts had expected. 

These jitters emerged on Friday when the U.S. released its latest inflation expectation report. A survey by the University of Michigan showed that inflation expectations for 2026 jumped to 4.9% and 3.9% for the next five to ten years. 

These numbers, together with the weak nonfarm payrolls report earlier this month, suggests that the US is heading towards stagflation, which is characterized by high inflation and slow economic growth.

Therefore, Bitcoin price pulled back as traders pared back their Federal Reserve interest rate cut odds. Polymarket data shows that the odds of a September cut, while still high, have declined from 80% to 70% as of today. 

Historically, BTC price does well when the Federal Reserve is cutting interest rates or when the cut expectations are rising. 

Bitcoin price also pulled back after Austan Goolsbee, an FOMC member, warned that the bank needed more data to determine the next course of action because the impact of new tariffs would take time. 

BTC price technical analysis

Bitcoin price derails as Polymarket Fed interest rate cut odds fall - 1

The daily timeframe chart shows that Bitcoin price has come under pressure in the past few days. This pressure began to form as a highly bearish double-top pattern at $123,200, with a neckline at $112,000. 

Bitcoin has also formed a bearish divergence pattern, as evidenced by the Relative Strength Index and the MACD indicators, which have formed lower lows and lower highs. 

Therefore, BTC price will likely pull back in the next few days and then resume the uptrend. More gains will be confirmed if it rises above the all-time high of $124,420.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

MoneyGram launches stablecoin-powered app in Colombia

MoneyGram launches stablecoin-powered app in Colombia

The post MoneyGram launches stablecoin-powered app in Colombia appeared on BitcoinEthereumNews.com. MoneyGram has launched a new mobile application in Colombia that uses USD-pegged stablecoins to modernize cross-border remittances. According to an announcement on Wednesday, the app allows customers to receive money instantly into a US dollar balance backed by Circle’s USDC stablecoin, which can be stored, spent, or cashed out through MoneyGram’s global retail network. The rollout is designed to address the volatility of local currencies, particularly the Colombian peso. Built on the Stellar blockchain and supported by wallet infrastructure provider Crossmint, the app marks MoneyGram’s most significant move yet to integrate stablecoins into consumer-facing services. Colombia was selected as the first market due to its heavy reliance on inbound remittances—families in the country receive more than 22 times the amount they send abroad, according to Statista. The announcement said future expansions will target other remittance-heavy markets. MoneyGram, which has nearly 500,000 retail locations globally, has experimented with blockchain rails since partnering with the Stellar Development Foundation in 2021. It has since built cash on and off ramps for stablecoins, developed APIs for crypto integration, and incorporated stablecoins into its internal settlement processes. “This launch is the first step toward a world where every person, everywhere, has access to dollar stablecoins,” CEO Anthony Soohoo stated. The company emphasized compliance, citing decades of regulatory experience, though stablecoin oversight remains fluid. The US Congress passed the GENIUS Act earlier this year, establishing a framework for stablecoin regulation, which MoneyGram has pointed to as providing clearer guardrails. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/moneygram-stablecoin-app-colombia
Share
BitcoinEthereumNews2025/09/18 07:04
Solana Treasury Firm Holdings Could Double as Forward Industries Unveils $4 Billion Raise

Solana Treasury Firm Holdings Could Double as Forward Industries Unveils $4 Billion Raise

The post Solana Treasury Firm Holdings Could Double as Forward Industries Unveils $4 Billion Raise appeared on BitcoinEthereumNews.com. In brief Forward Industries, the largest publicly traded Solana treasury company, filed to raise $4 billion through an at-the-market equity offering to expand its SOL holdings. The company’s stock (FORD) fell 8.2% following the announcement, while the proceeds could more than double the $3.1 billion currently held in Solana treasuries. DeFi Development Corp. also registered a preferred stock offering with the SEC, following similar funding tactics used by Bitcoin treasury companies like MicroStrategy. Forward Industries, the newest and largest publicly traded Solana treasury company, has filed to raise $4 billion through an at-the-market equity offering. For the sake of comparison, this $4 billion raise is nearly the same size as Bitcoin treasury Strategy’s Stride preferred stock raise in July. And it’s double the size of the Strife preferred stock offering the company did in May. The proceeds would be used for working capital; pursuit of its Solana token strategy, and “the purchase of income-generating assets to grow its business,” the company said in a press release. Forward Industries declined to comment to Decrypt on what other income-generating assets it’s considering adding to its balance sheet.  As markets opened Wednesday morning, Forward saw its stock price take a dive. The shares, which trade under the FORD ticker on the Nasdaq, dipped to $31.29 before rebounding to $34.28 at the time of writing—marking a 8.2% fall for the session. If the company sells all the shares and spends the bulk of the proceeds on buying Solana, it could more than double the amount of SOL being held in treasuries. At the time of writing, there’s already $3.1 billion in Solana treasuries, according to crypto price aggregator CoinGecko. Users on Myriad, a prediction market owned by Decrypt parent company DASTAN, have been growing more confident that SOL will reach $250 sooner than…
Share
BitcoinEthereumNews2025/09/18 12:43
Microsoft plans to invest $4 billion in building a second AI data center in Wisconsin

Microsoft plans to invest $4 billion in building a second AI data center in Wisconsin

Microsoft will invest $4 billion to build a second AI data center in Wisconsin, bringing its total investment in the region to over $7 billion.
Share
Cryptopolitan2025/09/19 03:05