Bitcoin Slumps to 21-Month Low Amid Interest Rate Fears

Bitcoin, the largest cryptocurrency by market capitalization, hit a fresh 21-month low on July 1 due to concerns over higher interest rates and the impact of the largest corporate buyer's reduced activity. The token dropped as much as 1.5% to $57,742 in Asia trading before steadying.

The decline took Bitcoin to its lowest level since September 17, 2024. This decrease is largely attributed to worries about interest rate hikes and the decreased purchasing power of a prominent corporate buyer. As a result, investor sentiment has weakened.