Crypto Market Weakens as Fed Rate-Cut Expectations Fade
Summary
- Bitcoin and the broader cryptocurrency market weakened.
- The market is watching the $78,000 range as a key support level.
- The prospect of higher-for-longer interest rates and slowing inflows into spot Bitcoin ETFs could affect volatility.
Forecast Trend Report by Period
Bitcoin and the broader cryptocurrency market weakened as fading expectations for Federal Reserve rate cuts weighed on investor sentiment.
Walter Bloomberg reported on May 18 that Bitcoin was trading near $76,660, down about 2%.
Bitcoin briefly topped $82,000 last week before reversing lower.
Traders are watching the $78,000 area as a key support level.
Expectations for rate cuts have faded rapidly under new Fed Chair Kevin Warsh.
Prediction market Kalshi is pricing the probability of a Fed rate cut before 2027 at about 34.3%.
Inflows into spot Bitcoin exchange-traded funds have also slowed.
The market is focused on how the prospect of higher-for-longer rates and moves in US Treasury yields could affect volatility in cryptocurrencies.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
