Bitcoin has retreated to around $84,490 as the likelihood of additional rate hikes by the U.S. Federal Reserve has increased. It rose to $87,397 on Sept. 22 but has since given back part of those gains.

On Sept. 24, local time, Bitcoin traded around $84,490, according to blockchain outlet Decrypt. After rising from the mid-$70,000 range to an eight-month high in just a few days last week, Bitcoin is now in a correction.

Markets are reflecting the possibility of further Fed rate increases as inflation concerns grow. CME FedWatch showed the probability of an October rate hike rising to about 75 percent, and the probability of a December rate hike rising to about 59 percent.

When rates rise, borrowing costs increase across the economy, and returns on the dollar, cash and U.S. Treasuries rise. That can reduce the relative appeal of Bitcoin, which does not pay interest and is volatile. Higher rates can also drain market liquidity and raise the cost of leveraged trading, weighing on crypto prices in a tightening phase.

On Sept. 16, the Fed raised its benchmark rate by 0.25 percentage point, lifting its target range to 3.75 to 4 percent. It was the first rate hike since July 2023. The Federal Open Market Committee passed the decision unanimously, 12 to 0. Fed Chair Kevin Warsh (Kevin Warsh) put the median benchmark rate at 4.1 percent through the end of 2027 in the dot plot of rate projections.

At the time, markets took the September rate hike as unlikely to lead to further increases, but the outlook has since changed. The probability of additional hikes by year-end rose to 68.5 percent on prediction market Myriad, and CME FedWatch put the chance of a 0.25 percentage point increase in October at about 75 percent.

Fed Governor Michael Barr (Michael Barr) said on Sept. 23 that additional policy adjustments may be needed to bring inflation back to its target level. An S&P Global report released the same day also showed inflation at its highest level in about four years.

The core personal consumption expenditures price index, the Fed's preferred inflation gauge, stands at 3.4 percent, above its 2 percent target. Markets are watching for the possibility of an additional rate hike at the Fed meeting on Oct. 27 to 28.

Most of the top 10 cryptocurrencies fell or traded roughly flat with Bitcoin. Ethereum rose 1.42 percent over 24 hours to $2,689, while XRP was effectively flat at $1.52. Zcash fell 2.5 percent to $1,527.57, and Hyperliquid slipped 0.37 percent to $93.04.

BNB and Solana gained. BNB rose 2.75 percent to $781.33 and, after topping $790 earlier this week, was up 11 percent on the week. It also cited Binance's purchase of $100 million worth of Circle shares, linked to USDC growth over the next five years. Solana rose 2.31 percent to $116.08. Solana hit a nine-month high last week after climbing above $117.

Both assets also showed recent institution-related moves. Grayscale's smart contract fund set BNB's weight at 30.6 percent in a recent rebalancing. Ethereum was at 29.47 percent and Solana at 29.15 percent, making BNB the fund's largest holding. Solana drew new demand after ZetaChain token holders voted 99.4 percent in favour of moving project tokens and artificial intelligence apps to the Solana network.

In the derivatives market, $348.33 million worth of crypto positions were liquidated over 24 hours. Long liquidations totalled $270.89 million and short liquidations totalled $77.43 million. Long positions using leverage were exposed to the price drop after last week's short squeeze.

Bitcoin spot exchange-traded funds saw inflows of $998.90 million on Sept. 22 alone. It was the largest daily inflow in 11 months. Net cumulative inflows for 2026 also turned positive for the first time this year, at about $320 million.

The total cryptocurrency market capitalisation was put at $2.93 trillion. That was about 2.5 percent below the $3 trillion recorded during last week's rally. The crypto fear and greed index held at 73 in the "greed" zone, and the altcoin season index stood at 51.

Markets are watching the Fed's rate decision on Oct. 28. With an additional hike to be decided that day, investors are expected to be able to gauge whether Bitcoin's recent correction is a short-term price move.