Bitcoin Price Plummets Amid Regulatory Concerns and Interest Rate Uncertainty

Bitcoin's price has been hit by a significant drop in recent days, falling by as much as 5% to below $65,000. This decline is largely attributed to investors pulling out of speculative assets and concerns about future cryptocurrency regulation.

The original cryptocurrency, often referred to as 'digital gold', has seen its value plummet since reaching a record high of over $126,000 in October. The loss represents nearly half of its total value at that time.

Despite discouraging reports on US economic growth and accelerating inflation, the market's response was relatively muted. Traders are still betting that the Federal Reserve will lower interest rates at least twice this year, according to data from CME Group.

The prospect of lower interest rates would likely boost the economy and investment prices but could also worsen inflation. Fed officials have stated they want to see inflation fall further before supporting rate cuts.