Why are Crypto Markets Falling Today as Bitcoin Retests $77K?

Key Insights:

• Fed rate-hike odds climbed to 60.2%, raising pressure on crypto markets and other risk assets.
• $386M in crypto positions were liquidated, including nearly $270M in longs.
• Bitcoin ETF outflows reached $166.8M over two sessions, signaling weaker demand.

Bitcoin (BTCUSD) extended its decline in crypto markets, trading at $77,770. BTC price was down from its high of $79,760 over nearly 14 hours.

The decline was attributed to a combination of factors, including a massive wave of liquidation in Bitcoin futures, a decline in demand for Bitcoin ETFs, profit-taking by holders, and rising macroeconomic fears.

All those factors pushed back crypto prices, bringing the Bitcoin price support level at $76K-$77K back into focus.

Macro Headwinds are Hitting Crypto Markets.

Renewed fears about inflation drove up market volatility. Geopolitical fears propelled oil prices over $100 a barrel, with Brent trading at $101.21, further fueling inflation concerns. CME’s FedWatch tool indicated a 60.2% chance for a Fed rate hike at the next meeting.

These developments added more pressure to risk assets. In summary, crypto markets were swept into a broader sell-off amid a hawkish rate outlook and commodity inflation concerns.