Bitcoin fell from yearly high as investors digest potential rate hikes.

As investors’ concern about potential rate hikes by the Feds resurfaced and recent U.S data further increasing the possibility, the bullish momentum that have driven the price of Bitcoin to a 2023 high have slowly vanished and majority of the cryptocurrencies in the market are trading in the red. In addition to the renewed concern, traders are also concerned that Bitcoin miners transferring their Bitcoins to exchanges could be a hint of an upcoming sell-off, which result into a momentary decline of Bitcoin price below $30,000.

Jerome Powell, the chairman of the Federal Reserve, is determined to bringing inflation under control by resuming interest rate hikes, despite the Federal Reserve pausing rate hikes on June 14. After the address of Powell’s June 14 Federal Open Markets Committee (FOMC), the market appeared to have a firm belief that the Fed would soon restart its rate hike once more. On top of that, the ADP data which released on Thursday have exceed market expectation significantly as it revealed that the private sector added 497,000 jobs in June, more than double the average estimate of 220,000. The Labor Department’s report was overshadowed by the data, which revealed mild labor market weakening. First-time unemployment claims rose by 248,000 last week, exceeding the prediction of 245,000, exceeding expectations.