Bitcoin Tumbles Below $78K Amid Rate Hike Fears and Massive Liquidations

The crypto market is experiencing significant pressure due to a combination of factors, leading to a decline in Bitcoin's price. The Federal Reserve's increasing likelihood of a rate hike, now at 60.2%, according to CME's FedWatch tool, has added to the downward momentum.

Meanwhile, $386 million worth of crypto positions were liquidated, with nearly $270 million in longs being force-closed. This massive wave of liquidation drove Bitcoin's price back towards its support zone near $77,770.

In addition to the liquidations, outflows from U.S. spot Bitcoin ETFs reached $166.8 million over two sessions, signaling weaker demand for Bitcoin. Long-term investors are also selling off their positions, contributing to the short-term correction.