Weak economic indicators lead Goldman Sachs to doubt a rate hike, providing a boost for bitcoin enthusiasts.
By Omkar Godbole|Edited by Sheldon Reback54 min ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Goldman Sachs believes the likelihood of a September Fed rate hike is low. (Ramin Talaie/Getty Images)SummaryShow- Goldman Sachs has stated that a September interest-rate hike by the Federal Reserve is "very unlikely."
- According to Chief Economist Jan Hatzius, inflation is expected to continue to improve, and current market perceptions of the federal funds target rate are overly aggressive.
- Bitcoin is trading at approximately $63,600, reflecting a 1% increase today.
Goldman Sachs has characterized the chances of a Federal Reserve interest-rate increase in September as "very unlikely," which could provide significant support for bitcoin BTC$63,333.20, which has remained within a tight trading range since early July.
The cryptocurrency is currently valued around $63,500, marking a 1% rise since the start of the UTC day. It has consistently traded within the $62,000 to $66,000 bracket for over a month.
Goldman Sachs revised its predictions following a series of weak economic reports, particularly regarding retail sales—an important indicator of consumer spending—and employment statistics, alongside a deceleration in inflation. Chief Economist Jan Hatzius shared these insights with clients, as reported by Bloomberg.
Hatzius noted, "Under our baseline economic forecasts, the inflation news is more likely to improve further than to deteriorate anew as the year progresses. We still think market pricing for the funds rate is too hawkish."
Interest rates play a crucial role in determining credit availability and liquidity in the economy, which directly impacts the demand for riskier assets like bitcoin. Traditionally, rate hikes are seen as bearish, a trend that became evident during the aggressive Fed tightening that contributed to the market downturn in 2022. Conversely, rate cuts are interpreted as bullish, similar to the crypto surge following the market crash in March 2020 due to Covid-19.
Currently, traders are pricing in a mere 30.6% likelihood that the Fed will increase its key interest rate by 25 basis points to the 3.75%–4% range, with most anticipating that rates will remain unchanged, according to CME FedWatch data. The probability decreased after the recent inflation report for July indicated a slowdown, aligning with expectations.
Federal ReserveFederal Open Market Committee (FOMC)Interest RatesRelated AssetsBitcoin$63,333.200.61%Latest Crypto News- 1Live updates: Bitcoin flat near $63,500, but the flows have quietly turned32 min ago
- 2The bitcoin futures market looks like a crowded club with a tiny exit – and it could cause pain3 hrs ago
- 3XRP traders bet on a rebound as price slips to $1 and bearish chatter surges4 hrs ago
- 4Bitcoin nears $64,000 in Asia morning hours as HYPE jumps 8% on the week4 hrs ago
- 5The SEC meeting that wasn't: State of Crypto 14 hrs ago
- 6Crypto investors are looking past market-cap rankings and back to fundamentals17 hrs ago
- 7Crypto wallet SafePal reveals a data breach exposing nearly 40,000 customers' order info19 hrs ago
- 8MiCA's cleanup is creating a new scam wave across the European Union19 hrs ago
- 9The stablecoin yield clash that won't go away has banks, crypto battling over tradition20 hrs ago
- 10The 'long bitcoin, short the bankers' era is officially over as TradFi giants embrace digital assets21 hrs ago
Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
By CoinDesk ResearchJun 30, 2026Commissioned byGenZcashZcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
View Full ReportMore From Markets