Bitcoin News | Bitcoin Hits $79,000 With Fed Hike Odds at 92.7%
Bitcoin returned above $79,000 after Monday's Wall Street open, gaining around 3% on the day as markets dissected mixed signals over the US-Iran war.The move followed comments from President Donald Trump raising prospects of a peace deal."The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage — The concept of which we are open to," he wrote on Truth Social.The Two 50-Week Lines Sit $3,650 ApartBitcoin returned above its 50-week exponential moving average at $77,430 after initially closing the weekly candle below it. The 50-week EMA is a key support target for a bull-market comeback.That line is distinct from the 50-week simple moving average at $81,081, which rejected Bitcoin at an $81,265 intraday high in late August and has not been cleared since.The gap between them is roughly $3,650, and Bitcoin currently sits between the two. The EMA weights recent prices more heavily, which pulls it lower during a drawdown and makes it the first line reclaimed on a recovery. The SMA is the slower, more demanding test.Reclaiming the EMA is a real technical event. It is not the same event as clearing the SMA, and coverage that refers to "the 50-week moving average" without specifying which one is describing two different levels interchangeably.Oil Dipped but Remains Above $100Trump doubled down in a separate post: "With the temporary exception of Oil, prices are coming down sharply, and Oil will drop like a rock as soon as the Military Conflict with Iran is over, and that will not be long."Prices dipped on the comments. WTI remained above $100 a barrel and Brent traded at $105.That is a prediction rather than a policy action, and the physical constraints have not changed. Three major transit routes remain under threat — the Strait of Hormuz, Saudi Arabia's East-West pipeline and the Bab El-Mandeb Strait.The pipeline closure is the structural item. It runs to the Red Sea port of Yanbu and exists to bypass Hormuz. With Hormuz disrupted and the bypass shut, Saudi crude has no unconstrained export route, and production fell to 6.238 million barrels per day — the lowest since 1990.Bab El-Mandeb coming under threat closes the remaining alternative. A tanker routed to Yanbu to avoid Hormuz still has to pass Bab El-Mandeb to reach European markets.US equities initially gained at the open before turning red, with the S&P 500 down 0.3% amid ongoing uncertainty over those routes.Hike Odds Ran From 59.4% to 92.7% in a WeekCME FedWatch puts the probability of a 25 basis point increase at 92.7%, up from 59.4% a week ago.Markets expect the move to take the target range to 3.75%-4.00% from 3.50%-3.75%.QCP Capital identified the policy bind the energy shock creates."A prolonged disruption would increase the risk of higher energy costs feeding into transport and logistics pricing, potentially lifting inflation expectations and constraining the Fed's ability to pause tightening even as growth slows," the firm wrote.It added: "This dynamic creates policy tension: continued energy prices could keep the Fed restrictive, while economic data weakness from higher energy costs could argue for patience."That is the sharpest statement of why Wednesday is difficult. An energy shock is inflationary and contractionary simultaneously, and the two implications point in opposite policy directions.The Language Matters More Than the DecisionQCP argued risk assets have already priced the 25 basis point move, with less volatility expected as a result.It pointed to the muted response to last week's CPI data as evidence that Fed officials' framing now carries more weight than the decision."This containment reflects a shift in focus: the binary question of whether the Fed will hike has been answered; the critical issue for positioning is now how policymakers frame the move and what it signals about the path ahead."The gap between market pricing and house forecasts is where that plays out. Markets price roughly 3.5 hikes long term. Bank of America and RBC Capital Markets both expect 75 basis points this year. Jefferies expects fewer, with Mohit Kumar arguing the first move is a credibility matter while subsequent ones depend on the war's duration and oil prices.The dot plot either validates the market path or corrects it. Chair Kevin Warsh has to deliver that signal without doing the forward guidance he rejected at Jackson Hole — the projections provide it impersonally, which may be the intended route.Positioning Is Light Going InSantiment data shows BTC-denominated open contracts fell 13.5% between September 3 and 11, against a 5% price decline. Positioning sits roughly 20% below pre-rally levels.Deleveraging stopped on September 11 — CPI day — and rebounded slightly over the two following sessions, suggesting the reduction was preparatory rather than forced.That limits the liquidation cascade available in either direction Wednesday. It also means less short-covering fuel if the surprise arrives.Above Bitcoin, Glassnode data shows nearly 8% of supply was acquired between $80,000 and $82,000 — the largest concentration at any comparable range — with the US spot ETF cohort's average cost basis in the same band.The Fed decides Wednesday at 2:00 p.m. ET, with the Bank of England Thursday and the Bank of Japan Friday.
