The Federal Open Market Committee (FOMC) conducted its fourth policy meeting of the year on June 12 and decided to maintain interest rates within the range of 5.25% to 5.5%. This decision, unforeseen by many, caused significant turmoil in the cryptocurrency market, leading to sharp declines in the values of Bitcoin and Ethereum. Bitcoin's price dropped notably from $70,000 to $66,000, while Ethereum experienced a similar decrease resulting in liquidations totaling around $400 million.

Federal Reserve Chair Jerome Powell acknowledged the progress made in addressing inflation but opted for a cautious approach, indicating that while substantial strides have been taken, it is not yet suitable to relax monetary policies.

The repercussions were swift in the cryptocurrency domain as Bitcoin tumbled from $70,500 to $67,220, Ethereum fell from nearly $3,700 to $3,400, and other cryptocurrencies like Cardano, Solana, and Ripple witnessed declines of at least 8%.

The market exhibited intense volatility with nearly $400 million worth of cryptocurrency assets being offloaded in just two days. US spot Bitcoin exchange-traded funds (ETFs) experienced a $200 million reduction, halting a 19-day streak of increasing funds.

Despite the United States' firm stance against premature rate reductions, regions like the European Union and Canada are pursuing alternative strategies by considering rate cuts within the current year.

A survey conducted by Grayscale revealed that 41% of respondents are displaying heightened interest in Bitcoin due to ongoing inflation concerns. This highlights a growing skepticism towards traditional economic measures and a surge in the pursuit of alternative investment avenues amid rising inflation.

In May, a surge in the acquisition activity of US spot Bitcoin Exchange Traded Funds (ETFs) was observed following the approval of eleven ETFs by the US Securities and Exchange Commission (SEC). These ETFs collectively procured 25,729 Bitcoins valued at $1.83 billion.