Bitcoin slid under $69,000 on Tuesday after Cleveland Fed President Beth Hammack warned that persistent inflation may force the Fed to act. Hammack said she is more concerned about inflation staying high than about a weakening job market. The Fed may need to raise rates if the trend continues.
She noted that inflation is now broad-based across goods and services and moving higher. While holding rates steady is reasonable for now, delaying action could make it more expensive to fix later. The next FOMC meeting on June 16-17 is expected to keep the federal funds rate at 3.5% to 3.75%.
Bitcoin had rallied to $82,850 before retreating on macro concerns. The sell-off intensified after Strategy sold 32 BTC from its massive 843,706 BTC holdings. US spot Bitcoin ETFs saw their 11th straight day of outflows, with $484 million leaving in the latest session alone.
BlackRock-linked wallets moved $427 million in Bitcoin to Coinbase Prime. Mt. Gox also transferred $731 million in Bitcoin on Tuesday, reviving fears of creditor sell pressure.