Bitcoin slides on Fed rate hike concerns, steadies near $76,000

Bitcoin fell 4 per cent during US trading sessions before stabilising around US$75,900 in early London hours, reflecting broader weakness in digital asset markets. The decline comes as investors reassess the cryptocurrency's prospects in light of anticipated monetary policy tightening by the Federal Reserve, which has traditionally pressured risk assets including cryptocurrencies.

The move marks a continuation of recent volatility in bitcoin markets, with investors closely monitoring economic data and central bank communications for signals on the timing and magnitude of potential rate hikes. Higher interest rates typically reduce appetite for volatile, non-yielding assets like cryptocurrencies by increasing the attractiveness of conventional fixed-income investments.

Bitcoin has faced headwinds from multiple directions in recent weeks, including macroeconomic uncertainty and shifts in investor sentiment towards risk assets. The cryptocurrency's ability to stabilise at current levels suggests some demand from buyers at lower prices, though traders remain cautious about the path forward pending fresh economic data and Federal Reserve guidance.