Bitcoin falls despite a calm "Fear Gauge."

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Bitcoin dipped even as Wall Street's fear barometer, the Chicago Board of Options Exchange's volatility index (VIX),

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Indicated minimal investor apprehension ahead of a Wednesday Fed rate hike.

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The most expensive coin declined 3.5% to $21,900. The price rose 8.5% last week, the highest since March, coinciding with stock market gains due to Fed dovishness.

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"Futures foresee a guaranteed 75-basis-point rate rise."

Fed funds futures suggest traders anticipate a 75-basis-point rate hike this week,

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With a tiny chance of a 100-basis-point rise. The basis point is 1%.

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The price drop is remarkable since the VIX indicator plummeted to 22.41 in early Asian hours, its lowest level since April 21.

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S&P futures scarcely changed. Bitcoin tracks Wall Street risk assets.

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Bitcoin's continuing decline may mean the Fed will continue tightening. Mark Mobius of Mobius Capital Partners considers bitcoin a market leader.

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Investors buy more bearish put options when the VIX soars than bullish calls. This is because a rising VIX suggests market worry, whereas a falling VIX shows market stability.

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The Fed has vowed to keep tightening until inflation falls to 2 percent annually. The preferred measure of inflation, core PCE, was 6.3% in May.

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Any Fed turn may be predicated on a significant decrease in the consumer price index, which includes volatile food and energy. The CPI rose 9.1% in June, a 40-year record.

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