Bitcoin slides below $85,000 as Fed rate‑hike odds rise

Bitcoin retreated to around $84,490 on Thursday, falling from the $87,397 peak it reached on Monday. The pullback coincides with a sharp increase in market expectations that the Federal Reserve will raise rates again in October.

Fed rate‑hike expectations drive sentiment

CME FedWatch data shows the probability of a 25‑basis‑point hike in October at roughly 75%, with the chance of a December hike near 59%. Higher rates typically strengthen the dollar and boost yields on cash and government bonds, making non‑yielding assets such as Bitcoin less attractive.

Crypto market breadth

Among the top ten cryptocurrencies, only BNB and Solana posted 24‑hour gains, up 2.75% and 2.31% respectively. Ethereum rose 1.42% to about $2,689, XRP was flat near $1.52, Zcash slipped 2.5% to $1,527.57, and Hyperliquid fell 0.37% to $93.04.

Derivatives and liquidation activity

Crypto derivatives recorded $348.33 million in liquidations over the past 24 hours, with long positions absorbing $270.89 million and short positions $77.43 million. The recent short‑squeeze left many leveraged longs exposed to the reversal.

Broader market context

The total crypto market capitalization stands at approximately $2.93 trillion, about 2.5% below the $3 trillion level reached during last week’s rally. Spot Bitcoin ETFs attracted $998.9 million in inflows on Monday, the largest single‑day haul in 11 months, and net 2026 flows turned positive for the first time this year at roughly $320 million.

Outlook

Traders will watch the Fed’s October 28 meeting for clues on whether the recent pause is temporary or signals a longer‑term retreat in crypto prices.