Bitcoin, Ethereum and XRP are facing potentially volatile trading as Goldman Sachs and JPMorgan now expect the Federal Reserve to raise rates by 25 basis points at its September meeting. Markets are pricing roughly an 87% probability of a hike, while the CME FedWatch Tool shows nearly 88%, up from about 70% before hotter August inflation data. Goldman Sachs shifted from expecting unchanged rates to forecasting a 25-basis-point increase at the September 16 FOMC meeting, while JPMorgan sees hikes in both September and December. Higher oil prices, Treasury yields and the U.S. dollar, alongside the continuing US-Iran war, are adding to concerns about tighter financial conditions and selling pressure in crypto. Oil was 3% above $103 per barrel at the time of writing. Traders are also awaiting the Bank of England and Bank of Japan rate decisions and a Senate procedural vote on the CLARITY Act. Bernstein described crypto markets as bearish but said positive legislation news could support a rebound, while a failed vote combined with hawkish Fed guidance could trigger another decline in crypto and crypto-linked stocks. CoinGlass data showed recent buying in derivatives, with Bitcoin futures open interest rising 2.78% to $52.80 over 24 hours, including gains of more than 1.42% on CME and 2.22% on Binance. Polymarket participants assign 67% of Yes bets to Bitcoin reaching $85,000 by December 31, 2026.