Bitcoin Falls to 22-Month Low Amid Rising US Interest Rate Hike Bets

Bitcoin's value dropped on Wednesday, approaching its lowest point in 22 months amid ongoing pressure from rising expectations of US interest rate hikes and reduced investor demand for high-risk assets. Additionally, outflows from cryptocurrency-linked exchange-traded funds (ETFs) continued to weigh on the market.

The cryptocurrency declined by 1.1% to $58,919.10, after earlier touching $57,832.50, marking its lowest level in 22 months, according to data from the CoinMarketCap platform.

Ethereum also fell by 0.3% to $1,588.28, while Binance Coin (BNB) decreased by 0.6%. In contrast, Solana rose by 1.2% and Cardano gained 3.7%, whereas Dogecoin declined by 0.5%.

This downturn follows steep losses for Bitcoin during the second quarter, where it lost approximately 14% of its value. Year-to-date losses have reached 32%, with the cryptocurrency trading over 50% below its all-time high recorded last October.

Analysts attribute the increased pressure on cryptocurrencies to growing expectations of continued tightening of US monetary policy. Cryptocurrencies, being non-yielding assets, are affected as the Federal Reserve reinforced in its latest meeting the possibility of keeping interest rates high or raising them again if economic conditions warrant.

Investors are also awaiting remarks from a Federal Reserve official later today, seeking new insights into the trajectory of interest rates and the US economy.

Meanwhile, Bitcoin-related spot ETFs have sustained outflows, with expectations that this trend could extend into an eighth consecutive week, adding further strain to the cryptocurrency.

Analysts noted that rising investor interest in artificial intelligence company stocks has contributed to reduced demand for cryptocurrencies, as some investment funds shift toward assets perceived to have clearer investment fundamentals.

On the regulatory front, Taiwan enacted a new law establishing a comprehensive regulatory framework for the digital asset sector. The legislation requires cryptocurrency service providers to obtain licenses and imposes stricter cybersecurity, client asset management, and internal control requirements.

In the United States, financial disclosures revealed that President Donald Trump generated revenues exceeding $1.4 billion in 2025 from cryptocurrency-related ventures. These included investments in the "World Liberty Financial" project, sales of digital tokens, and the digital currency "$TRUMP."