Bitcoin Drops Below $64K as Fed Rate-Hike Expectations Stir Markets

Bitcoin fell over 1.6% on Friday as market sell-off accelerated following Wall Street's opening. BTC/USD approached $64K as Binance's 'plunge protection team' stepped in with bid liquidity to prevent deeper declines. Geopolitical tensions and macroeconomic headwinds weighed on crypto markets as risk appetite waned. Mosaic Asset Company noted rising U.S. Treasury yields as a key driver, with the 2-year yield at 4.31% well above the Fed's target range of 2-2.25%. CME Group data suggested markets still expected no rate change next week, but priced in a 0.25% hike in September. Killa trader highlighted BTC's repeating short-term trading pattern, citing Binance's 'plunge protection team' as a familiar bid liquidity mechanism. Wealthmanager warned that a break below $64K would invalidate the short-term market structure. Rekt Capital reinforced the 2022 bear market analogy, noting BTC/USD's rejection from the 50-month EMA at $65,950.

Markets will be sensitive to this shift; Bitcoin's ability to hold long-term support levels hinges on liquidity conditions. Fed policy and U.S. bond movements remain critical drivers of short-term crypto market direction.