Bitcoin flat near $84,000 as Fed rate expectations cool

Bitcoin held close to $84,000 on Thursday, little changed after closing out its best quarter since 2024, as investors weighed remarks from a senior Fed official that tempered expectations for near-term policy action.

In prepared remarks delivered on Thursday afternoon, Fed Vice Chair Philip Jefferson said yields across the term structure had increased further since the central bank's September meeting, a sign, he said, that investors are reassessing the evolving macroeconomic landscape. "My colleagues and I will need to come to our own judgment, which may take more time," he added.

Market-implied odds of a Fed move at its Oct. 28 meeting have fallen to 30% from 70% earlier this week. The odds of one or more rate hikes by year-end have dipped to 80% from 95% one week ago.

The comments are the latest indication from the Fed that markets may have got ahead of themselves in assessing the pace of central bank rate hikes. Bitcoin closed out its best quarter since 2024.