Bitcoin plummeted to $62,995.6 after a hawkish Federal Reserve meeting sent markets reeling. The central bank's signals of an interest rate hike later this year dimmed the appeal of speculative assets like cryptocurrency.
The Fed's decision was in line with expectations, but the increased number of policymakers considering a rate hike amid high inflation risks sparked uncertainty in markets. New Fed Chair Kevin Warsh also hinted at an overhaul in how the central bank communicates its plans for interest rates.
Investors are now pricing in at least one 25 basis point hike by end-2026, according to CME Fedwatch data. This has put pressure on crypto prices, which largely retreated alongside Bitcoin's decline.