EL7.AI
Central BanksUpdated×3•Originally published 20 May 2026•Updated 20 May 2026•
1 min read

Rising Fed Hike Odds Deepen Bitcoin Sell-off as ETFs See $980M Outflow

Key Facts

1Federal Reserve minutes revealed a more hawkish tone than markets had anticipated.
2The minutes reinforced fears that interest rates could stay elevated longer, pressuring risk assets.

Recent data indicates a significant shift in market expectations regarding Federal Reserve policy, with the probability of a rate hike rising to 54.1% by December 2026 according to CME FedWatch data. According to reports, this hawkish turn has triggered intense selling pressure on digital assets, coinciding with Spot Bitcoin ETFs recording nearly $980 million in outflows across just two trading sessions.

This shift in risk appetite reflects growing concerns over resurgent inflation, prompting institutional investors to exit cryptocurrency positions. Compared to gold's performance, which often moves inversely to bond yields, Bitcoin faces dual pressure from rising opportunity costs and fading institutional momentum, as peer funds show mixed performance per market data.

Market attention is now focused on BTC's ability to hold above critical support levels, with the price standing at $76,834.36 (close May 19, 2026). Looking ahead, traders are monitoring upcoming speeches from Fed officials including Bowman and Williams for confirmation on hike probabilities, which will likely dictate liquidity trends in the crypto market.

Latest Updates · 1

  1. Major·

    Update: CME FedWatch data reveals a sharp shift in market expectations, with the probability of a rate hike in December 2026 rising to 54.1%. Conversely, the odds of rates remaining unchanged fell to 44.4%, while easing expectations shrank to just 1.5%, further intensifying downward pressure on digital assets.