Key Takeaways:
On May 25, bitcoin surged to peak at $77,831 amid growing optimism over Middle East peace negotiations.Geopolitical de-escalation sent Brent crude plunging to $96, wiping out the oil market’s war premium.Analysts warn that a potential Federal Reserve rate hike by October threatens the crypto recovery.Furthermore, there is a growing expectation that the Federal Reserve will raise interest rates in response to the new reality sparked by the war in the Middle East and the disruptions it has inflicted on the U.S. economy. According to Bitunix, U.S. interest rate futures are seemingly “starting to price in the possibility of a Federal Reserve hike as early as October, with a full 25-basis-point increase largely priced in before year-end.”
