Crypto Market Weakens as Rate-Cut Hopes Fade; Bitcoin Drops to $76,660
Summary
- Bitcoin fell about 2%% intraday to around $76,660.
- Markets cited fading expectations for Federal Reserve rate cuts and lower odds of monetary easing under a Kevin Warsh-led Fed as factors weighing on investor sentiment.
- Analysts view the $78,000 range as Bitcoin's key support level, while slowing spot ETF inflows were also cited as a headwind.
Forecast Trend Report by Period
Bitcoin and the broader cryptocurrency market are falling as expectations for US interest-rate cuts recede.
Walter Bloomberg reported on May 18 that Bitcoin fell about 2% intraday to as low as $76,660. The token briefly rose above $82,000 last week before surrendering most of those gains.
Markets are citing weaker expectations for Federal Reserve rate cuts as a key driver. Investors are also assessing the prospect that monetary easing could become less likely under a Kevin Warsh-led Fed, weighing on sentiment.
Analysts view the $78,000 range as a key support level for Bitcoin.
Slowing inflows into spot Bitcoin exchange-traded funds are also being cited as a headwind. Data from prediction-market platform Kalshi show markets are pricing in a 34.3% chance of a Fed rate cut before 2027.
Rising oil prices, geopolitical risks in the Middle East and US inflation concerns are also contributing to increased volatility across risk assets.
