Fed Rate Hike Expectations Increase Pressure on Bitcoin

According to CME FedWatch data, the probability of the Fed raising interest rates for the December 9 meeting is priced at 100% as of November 12. This situation emerges as an additional pressure factor in the weak cryptocurrency market. Bitcoin is currently trading at $72,744, and it is assessed that it may not trigger a strong wave of selling if it falls below the $70,000 threshold. The expectation of a rate hike reduces investors' willingness to turn to risky assets. While cryptocurrencies maintain strong ties with traditional markets, the shift of investors towards technology and artificial intelligence stocks increases the pressure on digital assets. The imbalance between inflows and outflows in the market continues. Many cryptocurrencies within the top 15 are experiencing persistent fund outflows. Security concerns and deterioration in investor sentiment support this situation. A sustainable recovery requires higher peaks and regular inflows into institutional products like ETFs. It is noted that new use cases and strong catalysts are needed for the market to experience a broad recovery.

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