Bitcoin Falls to $66,000 as Hawkish US Outlook Weighs on Crypto Markets

Bitcoin slid below the $67,000 level early Wednesday as traders reacted to a more hawkish U.S. macroeconomic outlook, triggering renewed pressure across major cryptocurrencies.

The world’s largest digital asset dropped 3.1% over the past 24 hours to $66,804. Ether declined 4.1% to $1,965, while XRP and BNB fell 4.3% and 4.5%, respectively.

Hawkish Federal Reserve Expectations Pressure Crypto

Market analysts linked the downturn to shifting expectations around U.S. monetary policy. The nomination of Kevin Warsh as Federal Reserve chair has been interpreted as a signal of tighter liquidity conditions and fewer potential rate cuts ahead.

Traders are now closely watching the $60,000 to $65,000 range as a potential support zone for Bitcoin, while any signs of macroeconomic easing could help stabilize prices.

ETF Inflows Continue Despite Market Weakness

Despite the pullback, spot Bitcoin ETFs recorded $166.56 million in net inflows on Tuesday, up from $145 million a day earlier. Spot Ethereum ETFs saw $13.82 million in inflows, compared with $57 million previously.

Asian equities traded higher, while U.S. markets delivered mixed results. Investors are now focused on upcoming U.S. labor market data, which could influence the Federal Reserve’s next policy move and broader risk sentiment.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.