Markets Shift From Rate Cut Bets to Hike Fears as BTC Retreats Below $80,000

Inflation concerns resurface, prompting traders to price in potential rate hikes as Bitcoin falls 5.7% weekly after failing to hold $82,000. Traders have pivoted from anticipating rate cuts to weighing the possibility of hikes within five trading days, as inflation pressur

Inflation concerns resurface, prompting traders to price in potential rate hikes as Bitcoin falls 5.7% weekly after failing to hold $82,000.

Traders have pivoted from anticipating rate cuts to weighing the possibility of hikes within five trading days, as inflation pressures re-emerge. The shift follows a brief Bitcoin rally that saw BTC peak above $82,000 before retreating to $78,000, a 5.7% weekly decline. Ethereum underperformed, dropping 10.2%, with the ETH/BTC ratio falling to 0.0275.

The BTC breakout last week was driven by leverage and short-covering rather than spot demand, leaving near-term support at $76,000–$78,000. Rising yields and persistent inflation could deter institutional buying, complicating further upside. Crypto markets now face headwinds from macro uncertainty as central bank policy expectations reverse.

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