Cryptocurrency Markets React to Anticipated Fed Rate Hikes

Bitcoin Rebounds, But Faces Persistent Headwinds

The cryptocurrency market experienced a volatile Tuesday, with Bitcoin (BTC) recovering from overnight lows to trade near $65,000. However, the prevailing bearish sentiment lingered as investors anticipated the upcoming Federal Reserve (Fed) meeting.

Federal Reserve Meeting in Focus

The Fed's Open Market Committee (FOMC) is scheduled to meet on Wednesday, June 12th, and investors are keenly awaiting the central bank's decision on interest rates. Goldman Sachs predicts that the Fed will raise rates four times by 2024, with rates rising to between 2.5% and 2.75%. These anticipated hikes have put pressure on risk assets, including cryptocurrencies.

Bitcoin Price Movement

At press time, BTC was trading at $67,707, down 3.5% from yesterday's high of $71,200. The cryptocurrency had fallen to near $66,000 on Tuesday, but it rebounded amid some buying support. Traders are watching the Fed meeting closely, as its outcome could influence the direction of the cryptocurrency market.

Market Correction Continues

The broader cryptocurrency market has been in a correction phase since hitting record highs in April. Ethereum (ETH) and other altcoins have also faced declines in recent weeks. The upcoming Fed meeting is expected to add further uncertainty to the market, as investors assess the potential impact of rate hikes on the economy and risk appetite.