Bitcoin and Ethereum Prices Plummet on Revised Rate Cut Timeline

Bitcoin (BTC) and Ethereum (ETH) prices are facing a challenging period as Citigroup's revised prediction of the Federal Reserve's rate cuts has sent shockwaves through the cryptocurrency market.

The investment bank's decision to push back its timeline for the expected rate cuts from June to September has reduced expectations for short-term monetary easing, which has negatively impacted risk assets like Bitcoin and Ethereum. This change is attributed to strong employment figures in the US and concerns about high inflation rates.

Geopolitical tensions between the US and Iran have also contributed to the price decline. The denial of a temporary ceasefire offer made by Iran's President Hassan Rouhani by US President Donald Trump has led to increased apprehensions about an escalation of hostilities, causing investors to sell off their risk assets.