The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Sign in to access this content
Sign InRecent 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 $69,420 (close May 20, 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.
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.