Bitcoin Sinks on Ebbing Fed Rate-Cut Bets and Cooling ETF Demand

  • Largest digital asset has retreated 10% from mid-March record
  • US economic outlook points to higher-for-longer interest rates
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Bitcoin dropped the most in almost two weeks, weighed down by cooling demand for dedicated US exchange-traded funds and ebbing bets on looser Federal Reserve monetary policy.

The digital asset fell as much as 7.4%, the biggest intraday decline since March 19, and traded around $65,400 at 10:09 a.m. in New York. Tokens earlier favored by the meme crowd such as Pepe and dogwifhat also slumped, sending a gauge of smaller digital assets sharply lower. The crypto declines came as equities markets in Europe and the US also dropped.