Goldman Sachs Sees October Fed Hike as Crypto Market Recovers

The crypto market is showing signs of recovery after a volatile week marked by the Senate’s failure to advance the CLARITY Act and the Federal Reserve’s latest interest rate increase. Bitcoin has climbed back above $76,000, while several major altcoins have also stabilized despite concerns over tighter U.S. monetary policy.

The Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, a move that appeared to have been largely anticipated by financial markets. Attention is now shifting toward the Fed’s October meeting, with Goldman Sachs reportedly expecting policymakers to deliver another 25-basis-point rate hike.

Market commentator Walter Bloomberg reported that Goldman Sachs revised its outlook after Wednesday’s Fed meeting struck a more hawkish tone than expected. The investment bank had also correctly anticipated the September rate increase ahead of the decision.

Goldman Sachs is not alone in expecting further monetary tightening. ANZ, Bank of America, RBC and TD Securities reportedly see another potential rate increase in October. According to the CME FedWatch Tool figures cited in the source article, market-implied odds of an October Fed hike have moved above 50%, although prediction-market probabilities for a 25-basis-point increase remain below that level.

Despite the increasingly hawkish interest rate outlook, Bitcoin’s recovery above $76,000 suggests traders have so far absorbed the latest Fed decision without a major selloff. However, higher borrowing costs remain a significant risk for cryptocurrencies and other speculative assets because tighter financial conditions can reduce investor appetite for risk.

Inflation will remain a key factor in determining the Fed’s next move. Wall Street banks have raised their forecasts for August core PCE inflation, potentially strengthening the case for additional monetary tightening. President Donald Trump has also said he would respect the Federal Reserve’s decisions regarding interest rates.

The crypto market could therefore face renewed volatility heading into October. Bitcoin and altcoins may be recovering for now, but persistent inflation and the possibility of another Fed rate hike could continue to influence cryptocurrency prices and broader risk sentiment.