Bitcoin and Ethereum Slide as Rate Hike Fears Return

Bitcoin and Ethereum are extending their decline as expectations for potential interest rate increases have grown stronger among market participants. Investors are trimming exposure to volatile assets, concerned that tighter monetary conditions will make fixed-income instruments more attractive relative to cryptocurrencies. Historically, digital assets tend to react sharply when the cost of capital rises, as higher rates reduce the appeal of speculative investments. Broader market caution is amplifying the selling pressure across the crypto space. Analysts warn that volatility could persist until central bank intentions become clearer.