Cryptocurrencies falling amid interest rate hike concerns

After a brief respite yesterday, major cryptocurrencies are heading lower as the entire market is concerned about the possibility of the Federal Reserve raising interest rates. The FedWatch tool from CME currently shows a 34% likelihood of a 25 basis point rate hike at next month's meeting, with traders expecting more potential hikes later this year. This narrative is weighing on cryptocurrencies - although not everyone agrees with this viewpoint. Zach Pandl from Grayscale stated in a report, "Our baseline forecast is that the Fed will pause the rate hikes." "If we are right, the price of Bitcoin may catch up with stocks." Pandl noted that Bitcoin has underperformed tech stocks, creating an opportunity for investors to lock in attractive prices for the cryptocurrency.