Bitcoin Rally Hits Hurdle as Rate Hike Odds Rise

The recent cryptocurrency market has seen a significant shift in momentum, with Bitcoin's rally to $82k facing an unexpected hurdle. According to CryptoQuant analysis, XWIN Japan pointed out that Bitcoin is caught between persistent long-term buyers and short-term caution.

This caution could blossom into panic, potentially leading to a bearish price reaction, especially given the increasing odds of a 25 bps rate hike by the Federal Reserve, with a probability of 87.3% as shown on the FedWatch tool.

The past four trading days have seen outflows from Bitcoin spot ETFs and high short-term volatility introduced by Friday's U.S. CPI report, resulting in $685.5 million in liquidations across the crypto market.