Cryptocurrency Market Faces Pressure Amid Rising U.S. Rate Hike Expectations
The cryptocurrency market experienced a downturn as of September 11, 2026, with Bitcoin trading at approximately $77,500 U.S., down from a recent high of $82,000 U.S. This decline comes amid increasing expectations of an interest rate hike by the U.S. Federal Reserve, with futures markets indicating a greater than 70% chance of a 25-basis point increase at the upcoming meeting on September 16. The rise in interest rate expectations followed a strong U.S. inflation report for August and rising crude oil prices, which are nearing $100 U.S. per barrel.
Other cryptocurrencies also faced pressure, with Ethereum's price hovering around $2,500 U.S. Despite the recent pullback, Bitcoin's price remains significantly higher than it was a month ago, when it was trading below $65,000 U.S. Bitcoin reached an all-time high of $126,198.07 U.S. on October 6, 2025, highlighting the volatility and rapid changes in the market.
In related news, U.S. Bancorp, the fifth largest lender in the United States, is preparing to launch its own stablecoin, USBDC, which is pegged to the U.S. dollar. This move reflects the growing interest in stablecoins among financial institutions. Meanwhile, Nasdaq has invested $100 million U.S. in Payward, the parent company of cryptocurrency exchange Kraken, as part of a funding round that values the company at $21 billion U.S.
Additionally, Bitwise Asset Management announced it will liquidate its Dogecoin exchange-traded fund (ETF) after 10 months of trading, with the final trading session expected on October 14, 2026. The ETF had generated $3 million U.S. in trading volumes during its first week but struggled to maintain that level in subsequent months.
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Source: KLEA News