Fed Rate Hike Odds Skyrocket, Casting Shadow on Crypto Markets

The Federal Reserve's rate hike odds have increased significantly in recent weeks, sparking concerns among analysts and investors about the potential impact on the price of Bitcoin and other cryptocurrencies.

According to data from CME FedWatch, the probability of a Fed rate hike at the April 29 meeting has risen to 12.4%, up from virtually zero just one week ago. This sudden shift in expectations has removed one of the key pillars supporting the bullish thesis for $BTC's rally from $64,000 to $76,000 earlier this year.

Lower rates typically push investors towards risk assets like Bitcoin, which could be affected by the vanishing rate cut odds. Analysts point out that the removal of rate-cut expectations will likely lead to a decrease in institutional capital flowing into $BTC and other risk assets.