Bitcoin Rally Slows as Markets Price in Higher Chance of Fed Rate Hike

WHY IT MATTERS

Think of the Federal Reserve as the organization that sets the "price of borrowing money" in the United States. When borrowing becomes more expensive (a rate hike), people and institutions tend to move money into safer, more predictable investments — like a savings account that now pays more interest — and away from riskier bets like crypto. Bitcoin is often treated as a risk asset, similar to tech stocks, so when traders expect rates to go up, demand for Bitcoin can soften. This story illustrates how events outside the crypto world, especially central bank decisions, can influence cryptocurrency prices.