Bitcoin price has dropped from $30,000 this morning. Because investors are worried that the Federal Reserve (Fed) has accelerated interest rates. will drag liquidity in the risky asset market This includes the cryptocurrency market.
As of 7:34 AM PST, the price of Bitcoin fell $1,200, or -3.86%, to $29,876.
Bitcoin fell in line with US stock markets. amid the forecast that The Fed may raise interest rates by 0.75% at its June meeting. The CME Group’s FedWatch Tool indicates that investors are now weighing 75 percent that the Fed will raise interest rates by 0.75% at its June 14-15 meeting, up from 19% last month.
Investors are also expecting the Fed to raise interest rates totaling more than 2.00% this year, bringing the short-term interest rate to 2.85% by the end of the year.
Investors are worried about the Fed’s rate hike and balance sheet cuts. Quantitative Tightening (QT) will result in liquidity outflows from risky asset markets, including the cryptocurrency market. and may cause the US economy to face a recession After a 1.4% contraction in 1Q22