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Bitcoin falls as traders raise odds of a July Fed rate hike
Major tokens dropped more than 2% in 24 hours as the two-year Treasury yield jumped to 4.29%, the highest since early last year, ahead of U.S. CPI and Fed Chair Kevin Warsh testimony.
Major cryptocurrencies slid over the past 24 hours, with CoinDesk reporting declines of 2% or more as traders increased expectations that the Federal Reserve could raise rates as soon as July.
CoinDesk said the repricing also pushed the two-year U.S. Treasury yield to 4.29%, its highest level since early last year, reflecting how sensitive near term yields are to policy expectations.
The outlet attributed part of the renewed hawkish tilt to escalating U.S.-Iran tensions and a jump in oil prices. CoinDesk noted President Donald Trump reinstated a U.S. blockade of Iranian vessels transiting the Strait of Hormuz and demanded a 20% reimbursement fee on other cargo passing the waterway.
Investors are looking to Tuesday’s U.S. consumer-price index release, and CoinDesk added that Fed Chair Kevin Warsh is scheduled to testify in Congress, developments that could clarify whether the Fed follows through on a potential hike or holds steady and weighs future cuts.
Latest closeBitcoin $62,848.81 ▲0.1%