Bitcoin Plunges Below $60k Amid Macro Risks and Fed Fears

Bitcoin's price has dropped below $60,000 due to macroeconomic risks and fears of Fed rate hikes. The cryptocurrency fell around 6% over the past week, despite easing geopolitical tensions.

Grayscale Research views the current decline as a normal market cycle correction rather than the end of Bitcoin's long-term uptrend. According to Grayscale, the asset has fallen more than 50% from its October peak of $125,000, but this resembles previous market cycles rather than a structural breakdown.

The main headwind for Bitcoin is a shift in expectations for US monetary policy. Investors now see a higher probability of rate hikes, weakening the appeal of assets viewed as hedges against currency debasement. The proposed CLARITY Act and Fed policy could determine Bitcoin's next major direction.