Bitcoin and Ethereum drop over 2% in early trading after Fed signals potential rate hikes later this year.
Bitcoin (BTC-USD) and Ethereum (ETH-USD) opened higher Tuesday but reversed course, falling to $62,256.40 and $1,654.21 by 9:36 a.m. ET, down 2.7% and 4.2% from their session highs. The declines follow last week’s Federal Reserve meeting, which shifted market expectations from potential rate cuts to at least one hike in coming months.
BTC is down 3.5% over the past week, 15.3% over the past month, and 36.7% year-over-year. ETH has fallen 3.8% week-over-week, 16.4% month-over-month, and 22.5% annually. Both assets remain well below their all-time highs of $128,198.07 for BTC and $4,953.73 for ETH.
Higher interest rates typically pressure crypto prices as investors pivot to yield-bearing assets and borrowing costs rise, reducing liquidity in risk markets.