The US Federal Reserve is eyeing a higher-than-expected interest rate hike next month as inflation persists, according to the New York Times.

“Federal Reserve officials have coalesced around a plan to raise interest rates by three-quarters of a point next month,” according to the New York Times.

The current challenging market conditions come at a time when Fed officials are unclear when they might stop interest rate adjustments. The New York Times reported that market watchers are betting that this trend will persist through at least December, or perhaps until an upcoming meeting, depending on economic projections and central bank statements.

Inflation shows no signs of slowing down as Consumer Price Index (CPI) figures show rates are rising, up 6.6% over the year to September, which is a 40-year high. With another Fed meeting scheduled for early November, experts are predicting another aggressive rate hike. Even the data projects that Fed officials could support a decision to raise rates.

In September, the Fed raised rates by 75 basis points, marking the fifth rate hike of the year. At the time, the Fed indicated that it was unlikely to be the last rate hike of the year. On October 10, Vice President Lael Brainard managed the problem of rising inflation and the restrictive monetary policies of the Fed will persist.

Inflation is currently rising due to several factors, including pandemic demand challenges, the war in Ukraine, and the supply chain’s struggle to keep up. Despite multiple rate hikes, the central bank has not yet been able to control inflation.

Last month, Bitcoin dipped below $19,000 shortly after the Federal Reserve announced another large rate hike, the fifth consecutive time the institution has raised rates this year. The impacts of each new Fed rate hike continue to reverberate across crypto and equity markets as investors react to an uncertain economic environment.

Historical price charts show that the price of Bitcoin fell by at least 10% or more after the Fed meetings in March, May and June. With this data, crypto investors could experience another roller coaster next month.

In an interview broadcast on Wednesday, market analyst Aaron Arnold projected a further drop for Bitcoin, stating that the current price of BTC is already repeating the 2018/19 bear market. According to Arnold, Bitcoin is consolidating around $19,000 to $20,00.0, just like it consolidated near $6,000 in 2018.

The trader said that while BTC had found a bottom of $6,000 per coin in 2018, the price eventually dropped 50%. Arnold said the risk repeats itself in today’s market. As a result, he claimed that BTC could drop to the $11,000-$14,000 support level or drop to $6,000.

A key reason for this is due to the abundance of bearish indicators in the market, including OPEC oil production cuts, sovereign debt crisis, high inflation and dollar devaluation.

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