VISI.NEWS | BANDUNG – Investor expectations for an imminent interest rate cut by the Federal Reserve (Fed) are fading fast after the latest economic data showed stubbornly high inflation and a resilient labor market. As a result, Bitcoin has dropped below $117,000 in recent trading.

Earlier this year, Bitcoin’s rally was largely fueled by optimism that lower interest rates would boost liquidity for risk assets, including cryptocurrencies. But with monetary policy likely to stay tighter for longer, investors are now shifting to a more defensive stance.

The market is clearly disappointed. Hopes for a quick rate cut were overly optimistic. If rates remain high for longer, Bitcoin could lose its momentum.

The weakness has also spread across altcoins. Ethereum, Solana, and several DeFi tokens saw significant sell-offs as traders moved funds into safe-haven assets such as gold and bonds, while crypto volatility surged once again.

Still, some market participants remain confident in Bitcoin’s long-term fundamentals. Institutional support and the growing adoption of Bitcoin ETF in the U.S. are seen as factors that may prevent a deeper decline.

In the short term, however, macroeconomic uncertainty is expected to continue weighing heavily on prices. Analysts warn that if the Fed reiterates its hawkish stance, Bitcoin could retest key support levels below $110,000.

Not financial advice do your own research.

@gvr