Bank of America Warns of 50 bps Fed Hike in December: Is Bitcoin Heading for Another 2022-Style Drop?

Bank of America said this week that the Federal Reserve could raise interest rates by half a percentage point in December. The warning came after Tuesday’s October inflation report ran hotter than expected for a third month in a row. In Bitcoin news, the coin trades at $73,888 on Binance, down 0.6% in 24 hours. It dropped to $72,727 on Tuesday after the report, its lowest price since August 20. The bank still expects the Fed to raise rates by 0.25 percentage points, or 25 basis points (bps), at its December 8–9 meeting. But it says the case for a bigger move is growing, and it calls the Fed’s decision to hold rates in October a possible policy mistake. Traders are starting to listen.

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