Fed’s divided rate decision threatens Bitcoin’s comeback as December hike looms

The Federal Reserve held its target range at 3.75% to 4% on Oct. 28 on a 10-2 vote. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring an immediate quarter-point hike. Rate-market trackers put the odds of a December hike between about 83% and 88%, and the market had priced in a hold before the meeting. Bitcoin dipped to $80,500 and recovered above $81,000, within reach of the roughly $81,500 aggregate cost basis of US spot Bitcoin ETFs that Glassnode estimates. The committee called growth strong and repeated its commitment to returning inflation to 2%. At his press conference, Chair Kevin Warsh acknowledged that credit conditions had tightened, credit spreads had widened, and higher rates were affecting technology investment, including AI.

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