Bitcoin Tumbles Below $71k as Traders Reassess Rate Cut Bets Amid Oil Price Uncertainty

Bitcoin's price plummeted below $71,000 on Wednesday as traders reassessed their expectations for a Federal Reserve interest rate cut. The decline was largely driven by uncertainty over the impact of rising oil prices on inflation and the US economy.

The Federal Reserve held interest rates steady, but its updated dot plot showed an increase in core PCE inflation projections this year. This reflected the growing concerns about the effects of surging oil prices due to the ongoing Middle East conflict.

Jerome Powell, Fed chair, emphasized that policymakers will need to monitor the situation and wait for further developments before making any decisions. The uncertainty surrounding the impact of rising oil prices on inflation weighed heavily on risk assets, including cryptocurrencies.