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Bitcoin Below $81,000 Amid Fed Rate Hike Concerns
Bitcoin is trading below $81,000 as concerns over a potential October Federal Reserve interest rate hike persist. The largest cryptocurrency by market value has fallen nearly 1% since midnight UTC, with prices coming close to $80,000 on Wednesday before a brief rebound to about $81,500. Markets have quickly repriced the odds of a Fed move, with the probability of an October rate hike briefly spiking to nearly 50% after the U.S. inflation data release, before easing to about 30%. Institutional demand remains fragile, with U.S. spot Bitcoin ETFs recording $150.5 million in outflows on October 14, reversing the previous day's $175.7 million inflow. Market-making firm STS Digital expects the uncertainty to weigh on liquidity across all asset classes.