Here’s another refined rewrite with a clean, professional tone:
Major cryptocurrencies dropped more than 2% in the past 24 hours as traders ramped up expectations for a July Federal Reserve rate hike.
The broader digital asset market is facing renewed selling pressure, with investors increasingly anticipating tighter monetary policy ahead of key U.S. inflation data and congressional testimony from Fed Chair Kevin Warsh.
Bitcoin fell over 2% to around $62,380, while Ether, XRP, and other major tokens posted similar declines, according to CoinDesk data.
In money markets, the odds of a rate hike this month have jumped to roughly 50%, a sharp rise from about 10% just days earlier, based on Bloomberg data. The shift follows comments from Fed Governor Christopher Waller, who signaled that additional tightening may be needed to curb inflation.
The repricing has extended to bond markets, pushing the two-year U.S. Treasury yield to 4.29%—its highest level since early last year. This part of the yield curve is especially sensitive to changes in short-term interest rate expectations.
A more hawkish outlook has been driven in part by escalating tensions between the U.S. and Iran, as well as a sharp rise in oil prices. President Donald Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz and imposed a 20% fee on other cargo passing through the key shipping route.
As a result, West Texas Intermediate crude has surged to nearly $80 per barrel from $67 at the start of the month, adding to inflation worries.
Focus turns to CPI and Warsh testimony
Investors are now awaiting the June consumer price index report, set for release Tuesday morning by the Labor Department.
Economists surveyed by Bloomberg expect headline inflation to ease below a 4% annual rate, with the report likely to show the first decline in both headline and core inflation since January, following May readings of 4.2% and 2.9%.
Even if the data meets expectations, it may be viewed as backward-looking given the recent spike in oil prices. If inflation proves more persistent, it could heighten concerns about the Fed’s policy path.
Attention will then shift to Kevin Warsh’s testimony before Congress. With the Fed typically offering limited forward guidance, markets will be watching closely for any signals on interest rates and inflation.
Analysts at ING say Warsh could highlight subdued inflation expectations, giving him room to hold rates steady. They also noted that even if a hike occurs, it could later be reversed, with markets still expecting deeper rate cuts over time.
