Bitcoin Tumbles Below $83,000 Amid Fed Rate Hike Expectations

The price of Bitcoin has fallen below $83,000 due to expectations that the US Federal Reserve will raise interest rates four more times by 2027. This is putting pressure on risky assets, with gold prices also falling to around $4,200 per ounce.

The Fed's CME FedWatch data shows that the Fed is expected to implement four quarter-point interest rate increases by June 2027, raising rates from 3.75%-4% to 4.75%-5%. The current interest rate increase of 25 basis points this month is contributing to rising US Treasury yields.

The strengthening dollar is also impacting other major economies, such as France, Germany, the UK, and Japan, with the dollar index rising 3% year-to-date to above 101. Rising bond yields are causing investors to reassess their expectations for future Fed interest rate hikes and market strategies.