The cryptocurrency market is in a state of heightened caution as participants await the Federal Reserve's forthcoming decision on interest rates. In recent days, Bitcoin's price dropped significantly, alongside plummeting trading volumes, reflecting investor apprehension. Last Friday’s data had led to some optimism for possible rate cuts in June, but newly balanced employment statistics and revised forecasts from financial entities dispelled immediate hopes. The uncertainty is compounded by unresolved trade negotiations, particularly between the US, Canada, and China, and official statements suggesting tariff-related inflation risks may deter rate reductions in the near term.
In this uncertain environment, safe-haven assets like gold have rallied, whereas cryptocurrencies, including Bitcoin, have declined, breaking the narrative of BTC as "digital gold." Broader negative sentiment prevails throughout both crypto and tech stock sectors, with market caution expected to persist in the coming weeks absent clear signals from global economic policymakers.