Crypto Markets Plunge Amid Fed Rate Hike Fears and Inflation Concerns

The crypto market is experiencing a downturn due to a combination of factors. The Federal Reserve's hawkish rate outlook, which has increased the chances of a rate hike to 60.2%, is putting pressure on risk assets.

According to CoinGlass data, $386 million in crypto positions were liquidated, with nearly $270 million in longs being force-closed. This led to a decline in demand for Bitcoin ETFs, resulting in net outflows of $166.8 million over two sessions.

The price of Bitcoin extended its decline, trading at $77,770 after hitting a high of $79,760 just 14 hours prior. The decline was attributed to profit-taking by holders and rising macroeconomic fears, including renewed inflation concerns fueled by geopolitical tensions.