Bitcoin Drops as Fed Turns Hawkish

The past week proved challenging for the cryptocurrency market, with bitcoin posting a significant decline after the U.S. Federal Reserve hardened its monetary policy stance. The central bank signaled that rate cuts are not imminent, as inflation continues to run above target levels. Investors responded by selling off risk assets, putting pressure not only on cryptocurrencies but also on technology stocks. Analysts note that bitcoin is increasingly sensitive to regulatory decisions, making its behavior increasingly similar to traditional risk assets. Upcoming Fed meetings will be key reference points for the crypto market.