Leading cryptocurrencies have experienced a decline of over 2% within 24 hours as traders raised their expectations for a Fed rate hike in July.
By Omkar Godbole Jul 14, 2026, 2:58 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Bitcoin's price. (CoinDesk)SummaryShow- Leading cryptocurrencies have experienced a decline of over 2% within 24 hours as traders raised their expectations for a Fed rate hike in July.
- The two-year U.S. Treasury yield surged to its highest level since early last year amid rising oil prices and escalating tensions with Iran.
- Market participants are keenly awaiting Tuesday’s consumer-price index report and Fed Chair Kevin Warsh’s congressional testimony, which may provide insights on the central bank’s potential actions regarding interest rates.
Several major cryptocurrencies are facing downward pressure, driven by increased speculations regarding a Federal Reserve interest rate hike as early as July, coinciding with critical U.S. inflation data and congressional testimony from Chair Kevin Warsh.
Bitcoin BTC$63,015.88 has seen a drop of more than 2% over the past 24 hours, now priced at $62,380. Other cryptocurrencies, including Ether (ETH) and XRP (XRP), are also experiencing similar declines, per CoinDesk data.
Current money market assessments indicate about a 50% chance of a Fed rate hike within this month, as reported by Bloomberg, a significant increase from roughly 10% just a few days prior. This shift in outlook follows comments from Fed Governor Christopher Waller suggesting that officials might consider raising rates to manage inflationary pressures.
This adjustment in expectations has reverberated through the fixed-income markets, driving the two-year U.S. Treasury yield to 4.29%, marking its peak since early last year. This segment of the yield curve is particularly responsive to changes in short-term policy outlooks.
The renewed hawkish sentiment is attributed in part to rising tensions between the U.S. and Iran, alongside a notable increase in oil prices. President Donald Trump has reinstated a blockade on Iranian vessels in the Strait of Hormuz, demanding a 20% fee on all cargo passing through this vital shipping route.
West Texas Intermediate crude futures have surged from $67 to nearly $80 a barrel since the beginning of the month, raising fresh inflation concerns.
Attention on CPI and Warsh's Testimony
Investors are looking forward to the Labor Department’s release of the June consumer-price index on Tuesday at 8:30 a.m. ET, which will provide updated insights on inflation.
Bloomberg's economist survey predicts that the headline CPI will dip below a 4% annual rate. This report is expected to reflect the first decreases in both headline and core inflation since January, following May’s figures of 4.2% and 2.9%, respectively.
Even if the numbers align with expectations, they might be perceived as outdated given the recent spike in oil prices. Should inflation appear to be more persistent, the data could heighten concerns regarding the Fed's future direction.
The focus will then shift to Mr. Warsh’s testimony before Congress. Given his preference for limited forward guidance, market watchers will be attentive for any hints regarding rates and inflation.
According to analysts at ING, he could "if he chooses, emphasize the tameness of inflation expectations."
They further noted that Mr. Warsh "has sufficient arguments to manage the rate hike risk and potentially maintain the current stance. Even if he faces pressure to increase rates, the valuation attached to the five-year segment of the curve suggests that any hike (if implemented) may be reversed later, with the possibility of larger cuts than increases still on the table."
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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
CEX trading volumes increased for the first time in five months in June, with spot trading rising 15.3% to $1.11 trillion and RWA perpetual volumes hitting a record $311 billion.
By CoinDesk Research16 hours agoCEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11 trillion and RWA perpetual volumes surging to a record $311 billion.
Why it matters:
CEX trading volumes increased for the first time in five months in June, with spot trading rising 15.3% to $1.11 trillion and RWA perpetual volumes hitting a record $311 billion.
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