The price of Bitcoin (BTC) has declined since September 4th, with the $80,000 and $76,000 levels lost on September 15th as markets reacted to increased odds of a Federal Reserve rate hike. Projections indicate another rate hike with no cuts expected until 2027, and 2026 Personal Consumption Expenditures inflation is projected at 3.7% before returning to the 2% target by 2029.
The Bitcoin price has been in decline since September 4th, losing the $80,000 level and then the $76,000 level on Tuesday, September 15th as the market reacted to increased odds of a Federal Reserve rate hike decision.
Projections for another rate hike with no cuts in 2027 were expected to pressure crypto. A risk-off sentiment due to rising inflation and tightening liquidity conditions could threaten the nascent Bitcoin recovery.
The 2026 Personal Consumption Expenditures inflation is projected at 3.7% and is not expected to return to the 2% target until 2029. According to Santiment, traders were “overwhelmingly prepared for exactly what happened” with this rate hike.
The isolated rate hike decision was not a big worry for traders, but the possibility that this could be the beginning of another quantitative tightening cycle should worry crypto market participants. Another hike later this year would matter more than the latest rate hike.
If inflation remains stubbornly high and oil prices remain elevated, Bitcoin and altcoin markets will face a difficult time. The Bitcoin Bull Score Index fell into bearish territory with a score under 40.
Crypto analyst Darkfost noted that the rate hike news sent the score into decline, short-term holders are sending BTC to exchanges at a loss, and demand is not showing up. The S&P and Nasdaq fell by 0.8% after the rate hike news, and the market is demanding a higher risk premium.
For Bitcoin in particular, its recent price decline was only part of the broader bearish crypto market trend this year. Since October 2025, when BTC made its all-time high, the Bitcoin 1-to-2-year supply has been rising.
Historically, BTC has only resumed its upward price trend once this supply metric has started to decline. A market that expects tightening liquidity conditions might put further selling pressure on BTC in the coming weeks, raising the possibility that the true crypto market bottom might not have formed yet.
