Summary
TLDR: Bitcoin and the crypto market are facing a downturn as Treasury yields rise and hopes for Federal Reserve interest-rate cuts fade. Market sentiment is dampened by concerns over inflation. There is a 95% probability of the Fed keeping interest rates unchanged in May. Outflows from Bitcoin ETFs are adding to the market pressure. Analysts suggest a rate cut in June could reinvigorate the market, potentially leading to a resurgence in cryptocurrencies in the future.
Key Points
1. The crypto market, particularly Bitcoin, has seen a downturn as Treasury yields rise and hopes for May’s Federal Reserve interest-rate cuts fade.
2. Bitcoin’s value decreased by around 7% from its recent high, trading near $65,000, highlighting its sensitivity to shifts in interest rate expectations and broader monetary policy.
3. Market analysts are focusing on the Federal Reserve’s forthcoming decisions, with data from the CME group suggesting a 95% likelihood that the Fed will maintain target rates in the May Fed meeting.