Rising expectations of a July interest rate increase from the Federal Reserve have weighed on cryptocurrency prices, with major tokens shedding 2% or more over the past 24 hours. The declines come as traders position themselves ahead of an upcoming inflation report that could shape the central bank's next policy move. Higher interest rates typically pressure risk assets like bitcoin, as they increase the appeal of yield-bearing investments and reduce liquidity across markets. The broad-based selloff reflects growing caution among market participants who are recalibrating their outlook on monetary policy. Should the inflation data come in hotter than anticipated, it could reinforce the case for tighter policy and add further downward pressure on digital assets. Conversely, softer figures may ease rate hike concerns and offer some relief to the market.
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