Fed Rate Hike Pressures Bitcoin as Price Ticks Near $64,000
The Federal Reserve's recent rate hike has put pressure on risk assets, including Bitcoin. The yield on two-year US Treasury notes has risen to 4.31%, well above the Fed's target range. This is causing investors to reevaluate their portfolios and may lead to a decrease in demand for cryptocurrencies.
Bitcoin traders are closely watching the $64,000 level, with some warning that a decisive move below this price could invalidate the cryptocurrency's bullish structure. Rekt Capital notes that Bitcoin's current price action resembles its 2022 bear-market pattern, which could make it difficult for the currency to establish a lasting recovery above the 50-month exponential moving average.
Rising US Treasury yields may not necessarily lead to lower Bitcoin prices, as seen in May 2025 when bond yields climbed but Bitcoin reached an all-time high. However, the current weakness in crypto may be due to portfolio rebalancing and broader uncertainty rather than fears of another Federal Reserve rate hike alone.