Bitcoin plunges to its lowest level in 21 months, nearing $57,000, amid concerns over prolonged high Fed interest rates.

Bitcoin plunged to its lowest level in 21 months, nearing $57,000, amid market expectations that the Federal Reserve may raise interest rates again, while capital continued to flow out of Bitcoin ETFs.

On July 1, 2569 at 09.15:XNUMX p.m., Bloomberg News reported that Bitcoin prices fell to their lowest level in 21 months in Asian trading on Wednesday (July 2). Amid pressure from expectations that the Federal Reserve (Fed) will continue its tight monetary policy and concerns about Strategy Inc., one of the world's largest Bitcoin holders,

Bitcoin fell as much as 1.5% to $57,742, its lowest level since September 17, 2567, before recovering slightly during late trading in Singapore.

Analysts stated that Recent hawkish statements from Federal Reserve officials have fueled market expectations that U.S. interest rates may rise further. This has led investors to reduce their holdings of assets that do not provide interest returns, such as cryptocurrencies, and to invest in assets that offer higher returns.

Data also indicates that in June, investors withdrew over $4,000 billion from US-listed Spot Bitcoin ETFs, the largest outflow since the fund began trading two years ago.

Tony Sycamore, an analyst from IG Australia. said Bitcoin is facing pressure from shifts in the Federal Reserve's interest rate policy outlook and a strengthening dollar. It is also anticipated that strong US nonfarm payroll figures to be released this week could further reinforce the Fed's bearish stance and put additional pressure on Bitcoin's price.

Another factor putting pressure on the market is concern about Strategy Inc. (formerly MicroStrategy) after investors began questioning the company's financial restructuring plan. While the market initially reacted positively to the share buyback and cash reserve increase plans, attention has recently shifted to the possibility that the company may have the flexibility to sell some Bitcoin to manage its balance sheet, rather than continuing to accumulate Bitcoin as in the past.

Since its peak above $126,000 last October, Bitcoin's price has fallen by more than 50% and has recently dropped below the 200-week moving average, a technical level that many analysts see as a potential signal of a long-term bear market.

Regarding U.S. monetary policy, investors continue to closely watch the stance of Federal Reserve Chairman Kevin Warsh. In his first press conference last month, he reiterated that the Fed will not allow inflation to remain high, leading the market to anticipate that interest rates may remain high.

meanwhile Beth Hammack, President of the Federal Reserve Bank of Cleveland, gave an interview to CNBC. that The Fed may need to raise interest rates further to bring inflation back to its 2% target, which would add further pressure on risky assets, including the cryptocurrency market.

refer : www.bloomberg.com

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