Bitcoin Falls Below $60,000 Amid Fed Rate-Hike Expectations
Bitcoin dropped below $60,000 this week, its lowest level since October 2024, as traders shifted to pricing in Federal Reserve rate increases rather than cuts. The move triggered over $1 billion in liquidations and puts Bitcoin on track for a back-to-back quarterly loss.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
Price Drop and Liquidations
Bitcoin fell below $60,000 this week, marking its lowest close since October 2024. CryptoSlate reported a 4% decline in the past 24 hours, while CoinDesk data showed a steeper 7% weekly loss. The sell-off triggered more than $1 billion in leveraged long liquidations, according to CryptoSlate.
Altcoins declined more sharply than Bitcoin during the same period, extending their underperformance relative to the largest digital asset.
Shift in Monetary Policy Expectations
Traders have abandoned near-term expectations for interest-rate cuts and are now pricing in the possibility of Federal Reserve rate increases by October, according to CryptoSlate. This reversal in monetary policy expectations has pressured risk assets broadly, with Bitcoin particularly sensitive to shifts in real rates and dollar strength.
Quarterly Performance
Bitcoin and Ethereum are both ending the second quarter in negative territory, marking a back-to-back losing first half of the year. This outcome runs against the historical pattern in which crypto assets typically recover in the second quarter following winter declines. The two-quarter losing streak reflects sustained headwinds from both macro factors and shifting sentiment around Fed policy.
Why It Matters
For Traders
Sub-$60,000 Bitcoin may find support or accelerate lower depending on Fed commentary; key watch is whether liquidation cascades continue or stabilize.
For Investors
Back-to-back quarterly losses and rising rate expectations signal a shift away from the post-approval ETF tailwind that characterized early 2024.
For Builders
Sustained macro headwinds may slow user acquisition and trading volume growth for protocol teams dependent on bull-market momentum to attract users.
This article is for information only and is not financial advice. Read the full disclaimer.
