Bitcoin Price Slides Toward $74K as Fed Rate Hike Bets Surge to 96%

.Bitcoin price slides again as it came under renewed selling pressure on Tuesday, moving closer to $74,000. Federal Reserve Governor Christopher Waller signaled support for another interest rate increase in December. His comments triggered a sharp reassessment of monetary policy expectations, with traders raising the probability of a 25-basis-point hike to 96%.

BTC declined approximately 1.3% to around $74,080 on major exchanges, while Nasdaq 100 futures slipped roughly 0.4% ahead of the US market open. The simultaneous weakness in cryptocurrencies and technology stocks highlighted how sensitive risk assets remain to changes in interest rate expectations.

Waller Backs December Rate Increase Despite Inflation Uncertainty

Waller acknowledged that he hoped inflation would improve from September’s figures but maintained that this would not necessarily change his position on another increase.

The governor was particularly critical of the previous inflation report, describing September’s data as disappointing and pointing to the continued strength of price pressures. He also highlighted the Personal Consumption Expenditures index, the Fed’s preferred inflation measure, which increased 0.5% month-over-month and 3.7% annually.

Waller added that a substantially worse inflation outcome could warrant a more aggressive policy response.

Markets reacted quickly. According to CME Group’s FedWatch Tool, the implied probability of a 25-basis-point rate increase in December. It means that it climbed from approximately 76% to 96% following his comments. Some market readings briefly placed the probability even higher, near 97%.

The shift suggests that investors are increasingly positioning for another round of monetary tightening rather than expecting the Federal Reserve to ease financial conditions.

October CPI Report Leaves Investors With Limited Visibility

The October Consumer Price Index report was scheduled for release at 8:30 a.m. Eastern on Tuesday, giving investors another important indicator to consider when assessing the Fed’s next move.

Economists expected headline inflation to rise 0.3% month-over-month, compared with September’s 0.6% increase, which was partly influenced by higher fuel costs. Core inflation was also expected to moderate.

However, the economic data available to markets remains incomplete. Following the 2025 US government shutdown, the Bureau of Labor Statistics is publishing only month-over-month figures for the latest reporting period. Annual comparisons are unavailable because equivalent data from the previous year was not collected.

This limitation makes it more difficult for investors to assess the broader inflation trend and determine whether price pressures are easing sufficiently to change the Fed’s position.

For Bitcoin, the implications are significant. Higher interest rates generally create unfavorable conditions for non-yielding assets by increasing the attractiveness of interest-bearing investments and tightening financial conditions. When borrowing costs remain elevated, investors may also become less willing to maintain exposure to volatile assets such as cryptocurrencies.

Bitcoin’s $74K Support Comes Into Focus

Bitcoin’s decline toward $74,000 adds another challenge to an already cautious market environment. Recent ETF outflows and subdued risk appetite have contributed to pressure on the leading cryptocurrency, while Waller’s comments have introduced another potential obstacle to a sustained recovery.

The immediate direction may depend heavily on incoming inflation data and whether other Fed officials reinforce expectations of a December increase.

A softer-than-expected CPI reading or more dovish comments from policymakers could provide some relief for risk assets. However, stronger inflation figures would likely reinforce expectations of tighter monetary policy and potentially extend the pressure on Bitcoin and other cryptocurrencies.

For now, traders are watching whether BTC can defend the $74,000 area. As monetary policy expectations continue to shift the Bitcoin price slides below $74K.

Will Bitcoin hold above $74,000 if markets continue pricing in a December rate hike? And could softer inflation data give crypto investors enough confidence to return to the market?