Bitcoin Drops Below $77,000 as Zcash Leads Losses on Fed Rate Hike Bets

Bitcoin (BTC) fell below the $77,000 mark as cryptocurrency markets faced renewed selling pressure, with traders increasingly betting on a Federal Reserve rate hike. Zcash (ZEC) led the losses among major digital assets, posting the steepest decline in the top-100 cryptocurrencies by market capitalization. The broader crypto market downturn comes amid heightened expectations that the U.S. Federal Reserve may tighten monetary policy further, a scenario that typically weighs on risk assets including Bitcoin and altcoins. Rising rate expectations strengthen the U.S. dollar and reduce appetite for speculative investments, pressuring crypto prices. Zcash, a privacy-focused cryptocurrency, saw some of the heaviest selling, reflecting broader weakness across privacy coins and altcoin sectors. Traders are closely monitoring macroeconomic signals and Fed commentary for clues on the direction of interest rates. Market participants remain cautious as uncertainty over monetary policy continues to drive volatility across both traditional and digital asset markets. Bitcoin's slide below the key $77,000 support level could signal further downside risk if bearish momentum persists.