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

The price of Bitcoin has fallen below $83,000 amidst expectations that the US Federal Reserve (Fed) will raise interest rates four more times by June 2027. This is putting pressure on risky assets, causing a decline in gold prices as well. The Fed's plans to increase interest rates come as US Treasury yields are also rising.

The CME FedWatch data suggests that the Fed will implement four quarter-point interest rate increases by June 2027, raising rates from the current range of 3.75%-4% to 4.75%-5%. The dollar index has risen 3% year-to-date and is above 101.

Economic growth, inflation risk, and rising capital demand continue to put upward pressure on bond yields. This, coupled with tensions in the Middle East and heavy borrowing for AI infrastructure, is causing investors to reassess their expectations for future Fed interest rate hikes.