Bitcoin slides below $60,000 as Fed hawkish shift fuels crypto sell‑off

Minneapolis Federal Reserve President Neel Kashkari signaled on June 26 that the Fed now expects to raise rates once in 2026, overturning a year‑long market bet on rate cuts. Economists’ surveys show confidence in a cut fell from 32 % in early May to just 7 %, and the benchmark rate is now projected to stay at 3.5‑3.75 % through year‑end.

The policy pivot depressed risk appetite, driving Bitcoin (BTC) under the psychologically important $60 000 barrier. Prices traded between $58 200 and $59 900, with a daily close near $60 550, while Ethereum (ETH) fell to about $1 540. A leveraged‑long liquidation of roughly $482 million and a net outflow of $696 million from U.S. spot Bitcoin ETFs highlighted the sell‑off. Asian equity markets also slipped, with South Korea’s KOSPI dropping more than 8 %. Analysts cite the combined effect of tighter monetary policy, rising U.S. personal consumption expenditures inflation data, and dwindling institutional inflows as the main drivers of the crypto market correction.