Fed lowers crypto expectations

Following the strong ISM data announced in the US, the prices that the Fed would make its first interest rate cut in June fell below 50 percent for a while. Bitcoin fell due to the cooling demand and Fed expectations. Bitcoin fell after the demand for exchange-traded funds cooled and the Fed's interest rate cut expectations were postponed with the announced data. Bitcoin fell more than 5 percent for a while before giving back some of its losses on the new trading day. Tokens such as Pepe and dogwifhat, which were previously popular with investors, also suffered losses, and an index tracking small digital currencies recorded its strongest two-day decline in two weeks. This year's sharp crypto rally is losing steam as ongoing price pressures in the US have led investors to reduce their bets on the Fed's interest rate cuts, pushing bond yields and the dollar higher. This creates a more challenging environment for a speculative corner of global markets such as the digital asset sector. “The changing views on the Fed are having an impact across crypto, with sell-offs occurring as the week progresses,” said Stefan von Haenisch, Director of Trading at OSL SG Pte. “Every sector will be affected, especially phenomenal assets where prices have outperformed Bitcoin over the last six months.” DACM co-founder Richard Galvin also said the crypto market has looked “weak” in the past 12 hours following the latest US economic data.