Goldman Sachs shifts to rate-hike forecast; Bitcoin under $80,000

Goldman Sachs revised its economic outlook after recent data showed stronger consumer spending and slower disinflation. The bank’s economists cited persistent inflationary pressure and a resilient labor market and now expect policymakers to consider interest-rate increases instead of cuts in the near term.

The update alters expectations for borrowing costs, bond yields and the dollar. Following the revision, U.S. Treasury yields rose and the dollar strengthened as traders priced in a higher path for rates. Equity sectors that benefit from low rates posted mixed returns while investors reassessed valuations.

Bitcoin’s price stalled below $80,000 and trading volumes narrowed as market participants paused to assess the outlook for monetary policy. The cryptocurrency has reacted to shifts in real interest-rate expectations, and the revised forecast reduced some short-term demand.

Market participants cited technical resistance near $80,000 and macroeconomic uncertainty as reasons for the pause. Inflows into spot bitcoin funds and ongoing institutional interest continued to shape the longer-term market picture.

Analysts note a close link between central-bank policy and speculative markets. Higher interest rates raise the discount rate used to value future cash flows, which can weigh on assets that do not produce income, including cryptocurrencies. Lower inflation readings and a reduced likelihood of further rate hikes have in the past coincided with increased risk appetite.

The Federal Reserve bases policy decisions on incoming data on prices and the labor market. Major banks, including Goldman Sachs, update their forecasts as new economic information arrives. Bitcoin’s price history contains episodes of rapid gains followed by consolidation when macroeconomic signals change.