UBS Sees Two More Fed Hikes by 2027 — Crypto Braces for the Longest "Pump-and-Don't" 📉

UBS now projects two additional Federal Reserve rate hikes through March 2027, upgrading its forecast from a single move previously expected in December 2026, according to a note reviewed by outlets covering macro markets. The revision follows a hotter-than-expected US inflation print that has reignited debate over the Fed's trajectory through 2026 and beyond.

Risk assets reacted swiftly. Crypto market liquidations crossed $900 million over the past 24 hours as leveraged positions unwound across major venues, with traders citing the inflation surprise and shifting rate expectations as the immediate catalysts. Selling pressure was broad-based rather than concentrated in any single token.

Bitcoin slipped below the brief $82,000 support level in recent trading, while major altcoins posted notable declines alongside the move. Traders are monitoring the Federal Reserve's upcoming communications for fresh signals that could influence Bitcoin price action and broader digital asset sentiment in the sessions ahead.

Market participants are weighing how the updated UBS path compares with prevailing swaps pricing and dot-plot guidance from FOMC members. Any deviation between bank forecasts and Fed rhetoric has historically been a flashpoint for short-term volatility in crypto, equities, and rate-sensitive FX pairs.

The timing places the projected hikes squarely within a period that several policymakers have flagged for reassessment, with inflation progress and labor market data set to determine whether the additional tightening materializes. Until then, positioning in crypto remains defensive, and liquidity providers have reported wider spreads on major pairs during the latest sell-off.