Bitcoin Drops Below $77,000 as Waller Speech Suggests Fed Rate Hike Risk

AI Impact AnalysisGrok analyzing...

📄Full Article· Automatically extracted by trafilatura2052 words

Bitcoin (BTC) slipped below $77,000 on Friday after Federal Reserve Governor Christopher Waller signaled openness to future rate hikes. The shift pushed traders to price a quarter-point Fed hike as early as October. The pioneer crypto has fallen roughly 4.5% over the past week as macro conditions deteriorate. Real yields have climbed and the dollar has firmed, eroding demand for non-yielding assets. Fed Governor Waller Signals a Hawkish Pivot Waller delivered the speech in Frankfurt under the title “Policy Risks Have Changed.” He backed holding rates steady near-term but warned that persistent inflation may force a different outcome. His shift carries weight because Waller backed 75 basis points of cuts in late 2025. The easing supported a softening labor market and reflected his dovish lean. The pivot now reframes the Federal Reserve hike debate inside the FOMC. “I can no longer rule out rate hikes further down the road if inflation does not abate soon, and that is especially true if measures of inflation expectations, some of which have risen lately, show signs of becoming unanchored,” he said. Follow us on X to get the latest news as it happens Traders Price October Fed Rate Hike Rate-futures traders responded quickly, with the October 28 meeting now carrying roughly a 40% chance of a 25-basis-point hike. A hold still leads the distribution at near 49%, but the forward curve has steepened hawkishly. The shift aligns with PIMCO’s Fed hike warning tied to the Iran war and rising oil prices. Headline CPI rose 0.6% in April. Core PCE inflation has reached roughly 3.3% year-over-year. Consumer sentiment adds to the strain. The University of Michigan index fell to 44.2, the record low reading for a series that began in 1952. One-year inflation expectations climbed to 4.8%. If the Middle East conflict eases and oil retreats, the hawkish pricing could unwind. If energy prices stay sticky, the FOMC may have to respond. That would leave Bitcoin exposed to tighter conditions and Wall Street inflation alarms through year-end.

Data Status✓ Full text extractedRead Original (BeInCrypto)

🔍Historical Similar Events· Keyword + Asset Matching6 items

2026-05-12

Bitcoin digests highest US CPI since 2023 as Fed rate hike woes return

Similarity 430%標的 BTC關鍵字 rate/fed/hike

2026-05-28

Bitcoin drops below $73,000 as US strikes on Iran spark $1 billion liquidations

2026-05-28

Bitcoin drops below $73,000 as U.S. strikes on Iran spark $1 billion liquidations

2026-05-18

Trump’s Iran Warning Sends Bitcoin Tumbling Below $77K In Risk-Off Shock

2026-05-18