Bitcoin Weighed Down by Fed Expectations: Can It Recover?
Bitcoin has been under selling pressure over the past few sessions, losing more than 3.00% in the last three trading days.
This weakness is partly due to uncertainty ahead of the Federal Reserve's monetary policy decision, which could lead to a higher interest-rate environment and reduce the appeal of risk-oriented investments like Bitcoin.
Markets are pricing in a high probability for a rate increase from 3.75% to 4.00%, suggesting traders have already positioned for a more hawkish outcome.
The U.S. dollar has been showing consistent strength, reflecting the attractiveness of bonds and encouraging stronger demand for dollars in a higher-rate environment.
This backdrop is not favorable for Bitcoin, as it reduces liquidity and attracts capital flows away from speculative assets like BTC.