$BTC 📉 Federal Reserve Rate Cut Expectations Cool

Although the market previously widely expected the Federal Reserve to start cutting rates in June, the futures market shows a 94% probability of a rate cut on June 25, this expectation has recently cooled. Federal Reserve Governor Waller stated that if tariffs decline, the Federal Reserve is expected to cut rates in the second half of 2025.  

📈 Bitcoin Breaks Historical High

Despite the cooling of rate cut expectations, the price of Bitcoin continues to rise. On May 21, the price of Bitcoin broke its historical high, reaching nearly $110,000, surpassing the previous high from January. This surge is mainly driven by the following factors: 

• Continuous inflow of institutional investors: Over the past five weeks, the inflow of capital into spot Bitcoin ETFs exceeded $5 billion, indicating an increased interest from institutional investors in Bitcoin. 

• Weakening dollar: The weakness of the dollar has enhanced Bitcoin's appeal as an alternative asset.

• Improvement in regulatory environment: Clarification of cryptocurrency regulations has increased market confidence.

In addition, analysts predict that if the pullback remains limited, the price of Bitcoin may reach $140,000 by the end of the year.