Bitcoin Drops from $87,397 as October Hike Odds Hit 75% — SkimNews
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- Bitcoin slipped to ~$84,490 from Monday's $87,397 peak as CME FedWatch showed October rate-hike odds climbing to ~75% and December odds at ~59%, per the source
- BNB and Solana were the only top-10 cryptos with 24-hour gains (2.75% and 2.31% respectively), with Grayscale's Smart Contract Fund giving BNB its largest holding weighting at 30.6%, edging out Ethereum and Solana
- Fed Chair Kevin Warsh paired the September 16 unanimous 12-0 rate hike to 3.75%-4% with a dot plot projecting a median rate of just 4.1% through end-2027—initially read as dovish enough to cap tightening, until hot inflation data reversed the narrative
- Core PCE sits at 3.4%—well above the Fed's 2% target—and Fed Governor Michael Barr said further policy adjustments are likely needed, giving policymakers a data-driven case to tighten at the October 27-28 meeting
- Spot Bitcoin ETFs pulled in $998.9 million on Monday, their biggest single-day haul in 11 months, pushing net 2026 flows positive for the first time this year at ~$320 million
- Crypto derivatives saw $348.33 million in liquidations over 24 hours, with longs absorbing $270.89 million of the damage after last week's short squeeze left leveraged bulls exposed to the reversal
Why it matters: Leveraged longs ate $270.89 million of $348.33 million in crypto liquidations as a hot Core PCE reading at 3.4% reversed what Chair Warsh's dovish-leaning dot plot had initially framed as a one-and-done hike—now Bitcoin's $87,397 high hangs by a thread heading into the October 28 Fed decision.
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