Market bets on the Fed raising rates four more times by June next year; Bitcoin briefly falls below $83,000.

BlockBeats news, September 24 — CME FedWatch data shows the market is currently betting that the Federal Reserve will raise rates a cumulative 4 times by June 2027, pushing the federal funds rate target range up to 4.75% to 5%, implying an additional 100 basis points of hikes on top of the current 3.75% to 4%.

U.S. Treasury yields rose across the board, with the 20-year yield approaching 5.5% and the 10-year yield breaking above 5.1%, hitting a new high since 2007, while the long-term Treasury ETF TLT fell below $80. Meanwhile, the dollar index broke above 101, up about 3% year-to-date.

Strong economic data, Middle East tensions driving up inflation and energy prices, and increased bond supply from AI infrastructure financing collectively pushed Treasury yields higher. Weighed down by high rates and a strong dollar, BTC briefly fell from a recent high of $87,500 to below $83,000, while gold held above $4,200.