Bitcoin and other major cryptocurrencies fell over 2% as traders priced in a 50% chance of a July Fed rate increase.
Major cryptocurrencies declined by more than 2% in the past 24 hours as traders sharply increased bets on a Federal Reserve rate hike this month. The shift follows hawkish remarks from Fed Governor Christopher Waller, pushing money-market odds of a July increase to roughly 50%, up from 10% days earlier.
The two-year U.S. Treasury yield climbed to 4.29%, its highest level since early last year, reflecting heightened sensitivity to near-term policy expectations. Investors are now focused on Tuesday’s consumer-price index report and Fed Chair Kevin Warsh’s congressional testimony for further clarity on the central bank’s trajectory.
The repricing in rate expectations has pressured risk assets, including cryptocurrencies, as tighter monetary policy typically dampens demand for speculative investments. Oil price gains and U.S.-Iran tensions have also contributed to the cautious sentiment.