Bitcoin (CRYPTO:BTC) is grappling with challenges amidst the US Federal Reserve's cautious approach to inflation control, keeping interest rates elevated to manage economic stability.

Federal Reserve Chairman Jerome Powell's recent comments indicated optimism about inflation trends but emphasised the need for sustained improvement before considering rate adjustments.

This stance suggests prolonged tight monetary conditions, potentially reducing liquidity in financial markets, which is critical for high-risk assets like Bitcoin.

Additionally, Bitcoin miners are feeling financial strain due to rising operational costs, leading to increased selling pressure on BTC prices.

Institutional interest in Bitcoin ETFs has also cooled, reflecting cautious sentiment among large investors amid market uncertainties.

Investors are closely watching Bitcoin's support levels around $60,000, anticipating whether it can withstand selling pressures or face further declines amidst current economic conditions.