Bitcoin slips as traders lift July Fed rate hike bets ahead of Inflation report
CoinDesk 2026-07-14 02:58:36
Context: Major cryptocurrencies, including Bitcoin and Ether, have dropped by 2% or more in 24 hours as traders increased their bets on a potential July interest-rate hike by the Federal Reserve, ahead of key US inflation data and congressional testimony from Fed Chair Kevin Warsh. The two-year US Treasury yield jumped to its highest level since early last year amid renewed upswing in oil prices and US-Iran tensions. Investors are now focused on the upcoming consumer-price index report and Fed Chair Warsh's congressional testimony for clues on the central bank's future actions.
Key Facts
- Bitcoin's price dropped by over 2% in 24 hours to $62,380, according to CoinDesk data, with Ether, XRP, and other tokens also nursing similar losses.
- Money markets now assign roughly a 50% probability to a Fed rate hike this month, according to Bloomberg data, up sharply from about 10% just days ago.
- The two-year US Treasury yield jumped to 4.29%, its highest level since early last year, as investors repriced their expectations for a potential rate hike.
- West Texas Intermediate crude futures have surged to nearly $80 a barrel from $67 at the start of the month, stoking fresh concerns about inflation.
- Economists surveyed by Bloomberg forecast that headline CPI will fall below a 4% annual rate, with the report expected to show the first declines in both headline and core inflation since January.