Bitcoin Drops Below $83K as Traders Price Four Fed Rate Hikes by June 2027

Traders are pricing in four quarter-point Federal Reserve rate hikes by June 2027, a scenario that would push the federal funds rate to a range of 4.75% to 5%, according to CME FedWatch data. This outlook follows the Fed’s recent 25-basis-point increase in September, bringing the current rate to a 3.75%-4% range. The expectation of further tightening has contributed to elevated U.S. Treasury yields, with the 10-year yield now above 5.1%—a level not seen since 2007—and the 20-year yield near 5.5%, pushing long-bond ETFs like TLT to record lows below $80. Beyond the U.S., government bond yields in Europe and Asia are also rising, reflecting broader pressures on borrowing costs.