Bitcoin Price Prediction: Dips Below $61,000 Amid Regulatory Scrutiny and Fed’s Hawkish Stance

cryptonews.com:

As Bitcoin price predictions become increasingly cautious, the cryptocurrency continues to face substantial headwinds. Recently trading around $61,540, Bitcoin dipped to an intra-day low of $60,910, influenced by escalating regulatory scrutiny in the U.S. and a hawkish Federal Reserve stance on interest rates.

Despite these challenges, strategic initiatives such as Hong Kong’s $1 billion crypto ETF liquid fund are being introduced to bolster market stability and potentially mitigate further losses.

This fund, along with partnerships like Wintermute’s collaboration with OSL and HashKey, aims to enhance liquidity for Bitcoin and Ethereum ETFs, offering a glimmer of hope for recovery amidst prevailing market uncertainties.

Research from 10x Research indicates that approximately $2 billion worth of tokens are scheduled for release over the next ten weeks. This influx of previously locked tokens is likely to inflate market supply and could dampen altcoin values.

As these assets enter the market, venture capitalists might sell off their holdings to capitalize on gains, thereby stifling potential upward price movements for cryptocurrencies.

This scenario could potentially usher in an extended corrective period for the crypto market.

The strength of the U.S. dollar, bolstered by expectations that the Federal Reserve may maintain high interest rates for a prolonged period, is exerting pressure on Bitcoin prices.

This scenario is reinforced by higher U.S. Treasury yields, which support the dollar’s ascent. Susan Collins of the Federal Reserve noted that reaching the 2% inflation target might slow economic growth, adding complexity to the rate outlook.

While additional rate hikes are not guaranteed, they remain possible, reflecting the