Crypto Market Weakens as Fed Rate-Cut Hopes Fade, Bitcoin Falls to $76,660
Summary
- Bitcoin was reported to be falling to around $76,660 as expectations for U.S. rate cuts weakened.
- The market said fading rate-cut expectations and the view that the chances of monetary easing could decline under a Kevin Warsh-led Fed are weighing on investor sentiment.
- Analysts said the $78,000 range is a key support level for Bitcoin, while slowing spot ETF inflows were also cited as a headwind.
Forecast Trend Report by Period
Bitcoin and the broader cryptocurrency market are weakening as expectations for U.S. interest-rate cuts recede.
Walter Bloomberg reported on May 18 that Bitcoin fell about 2% intraday to around $76,660. The cryptocurrency briefly climbed above $82,000 last week, but has since surrendered most of those gains.
Fading expectations for Federal Reserve rate cuts are seen as a key driver. Investor sentiment is also under pressure from views that monetary easing may become less likely under Kevin Warsh, who is being mentioned as a potential candidate to lead the Fed.
Analysts identified the $78,000 range as a key support level for Bitcoin.
Slowing inflows into spot exchange-traded funds are also weighing on the market. Data from prediction-market platform Kalshi show traders are pricing in a 34.3% chance of a Fed rate cut before 2027.
Rising oil prices, geopolitical risks in the Middle East and concerns over U.S. inflation are also adding to volatility across risk assets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.