Bitcoin Tumbles Below $62K as Fed Rate Hike Fears Weigh on Crypto Markets

Bitcoin's price continued to decline on Thursday, falling below $62,000 and reaching its lowest levels this year. The world's largest cryptocurrency dropped by 1.7% to $61,721.0 as of 02:42 ET (06:42 GMT), remaining close to a 1-½ year low hit earlier in June.

The decline in Bitcoin's price comes amidst growing expectations that the U.S. Federal Reserve will either keep interest rates high for longer or even raise them further this year. Investors are closely watching upcoming data on the PCE price index, which is the Fed's preferred inflation gauge.

Crypto exchange-traded funds (ETFs) also saw outflows of $469 million on Wednesday, their biggest outflow since June 2. This marks a seventh straight week of outflows for these ETFs as investors continue to pivot towards assets with clearer fundamentals, such as artificial intelligence stocks.