Bank of America Predicts Three Fed Rate Hikes in 2026, Pressuring Crypto Markets

Bank of America now expects three 25-bps rate hikes in September, October, and December 2026, a sharp reversal from earlier no-change forecasts. Higher rates typically reduce liquidity for risk assets like crypto.

• BofA predicts 75 bps total tightening, bringing rates to 4.25%-4.50% by year-end
• Deutsche Bank also raised its forecast to two 25-bps hikes in September and December
• Markets are pricing in about 41.2 bps of tightening for 2026
• Higher rates reduce market liquidity and push investors toward yield-bearing assets like Treasuries
• Bitcoin is consolidating near $64K-$65K but faces headwinds from the hawkish outlook

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