Crypto Weakens as Fading Fed Rate-Cut Bets Weigh; Bitcoin Falls 2%
Summary
- The cryptocurrency market weakened, with Bitcoin falling about 2%%.
- The market is focused on the $78,000 range as a key support level.
- Fading rate-cut expectations, slowing inflows into spot Bitcoin ETFs, and the possibility of higher rates for longer are in focus for their impact on volatility in the crypto market.
Forecast Trend Report by Period
Cryptocurrencies, including Bitcoin, traded lower 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 turning lower.
The market is watching the $78,000 area as a key support level.
Expectations for rate cuts have weakened rapidly under new Fed Chair Kevin Warsh.
Prediction market Kalshi is pricing the odds of a Fed rate cut before 2027 at about 34.3%.
Inflows into spot Bitcoin exchange-traded funds have also slowed.
Traders are also watching how the prospect of higher rates for longer and moves in US Treasury yields may affect volatility in the crypto market.
