Fed's Hawkish Pivot Pressures Crypto Liquidity Outlook as Traders Brace for Choppy Summer

BTC-2.66%
According to Bitcoin.com, crypto markets are facing tighter liquidity conditions as Federal Reserve rate expectations shift in a more hawkish direction. Higher-for-longer policy expectations can reduce stablecoin growth, ETF inflows and overall risk appetite, potentially weighing on Bitcoin and major altcoins. Traders are preparing for range-bound, volatile market conditions rather than a clean trend through the summer. If liquidity continues to tighten, rallies may face selling pressure absent a stronger catalyst.
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