Cryptocurrencies decline amid interest rate hike concerns

Glonhui June 23｜After a brief respite yesterday, major cryptocurrencies are sliding lower, with the entire market feeling anxious about the possibility of a Federal Reserve interest rate hike. CME's FedWatch tool currently indicates a 34% chance that the Fed will raise rates by 25 basis points at next month's meeting, and traders expect more potential rate hikes later this year. This is the narrative dragging down cryptocurrencies—though not everyone agrees with this view. Grayscale's Zach Pandl noted in a report: “Our baseline forecast is that the Federal Reserve will pause interest rate hikes.” “If we are correct, Bitcoin's price could catch up to equities.” Pandl said Bitcoin's underperformance relative to tech stocks also creates an opportunity for investors to lock in an attractive entry price for the token.