Bitcoin has shown relative resilience amid broader risk-asset volatility, supported by recovering spot demand, improved equity market sentiment and short covering, according to CoinShares analysis released October 23. The crypto asset's stability comes as markets widely expect the Federal Reserve to hold rates steady at its October 28 meeting.
However, hotter-than-expected CPI and PPI data keep the risk of further rate hikes alive. CoinShares noted that while a weakening U.S. housing market gives the Fed room to pause, inflation pressure remains a key constraint on monetary policy. An unexpected October hike would likely deliver a larger shock than usual because it would exceed current market expectations.
The firm emphasized that the crypto market's trajectory will continue to be driven primarily by rate expectations and liquidity shifts, with the policy buffer from housing weakness not yet sufficient to offset persistent inflation risks.
CoinShares: Bitcoin Resilient Amid Fed Rate-Hike Risk
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