Fed Hike Fears Spark Crypto Market Crash

The crypto and stock markets are experiencing a sharp decline, with the total market capitalization of cryptocurrencies dropping by 2.8% to $2.24 trillion in the past 24 hours.

Major cryptocurrencies like Bitcoin have fallen by around 2.7% to $63,400, while Ethereum has dropped more than 3.2% to $1,874.

The decline is attributed to several key factors, including surging expectations of a Federal Reserve rate hike at the upcoming FOMC meeting.

According to the CME Fed Watch tool, the odds of a 25-basis-point hike have climbed to around 37%, compared with roughly 10% a week ago. Higher interest rates can negatively impact crypto and growth stocks, as investors may prefer safer assets that offer better returns.