Bitcoin and friends take a 2% cold shower as the Fed flips the hawk dial to July 🚿

Bitcoin slipped alongside other major cryptocurrencies on Monday, shedding more than 2% in 24 hours as traders sharply raised bets that the Federal Reserve will raise interest rates as soon as July. BTC $62,655.11 last changed hands near $62,380, while Ether (ETH), XRP (XRP) and other large-cap tokens posted similar losses, according to CoinDesk data.

Money markets now price roughly a 50% probability of a July rate hike, up from about 10% just days ago, according to Bloomberg. The repricing followed remarks from Fed Governor Christopher Waller that officials may need to raise rates to bring price pressures under control. The two-year U.S. Treasury yield climbed to 4.29%, its highest level since early last year, as investors pulled forward expectations for tighter policy.

Renewed U.S.-Iran tensions and a jump in oil prices have stoked fresh inflation concerns, with President Donald Trump reinstating a U.S. blockade of Iranian vessels transiting the Strait of Hormuz and demanding a 20% reimbursement fee on all other cargo passing through the waterway. West Texas Intermediate crude futures have surged to nearly $80 a barrel from $67 at the start of the month.

Attention now turns to the Labor Department's June consumer-price index report due Tuesday at 8:30 a.m. ET, with Bloomberg-surveyed economists forecasting headline CPI will fall below a 4% annual rate. The release is expected to show the first declines in both headline and core inflation since January, following May's readings of 4.2% and 2.9%, respectively. Fed Chair Kevin Warsh's congressional testimony is also scheduled this week and could clarify whether the central bank will follow through on a potential rate hike or ultimately hold steady and consider future cuts.