Bitcoin is grappling with a significant decline, mirroring the broader equity market's downturn following the U.S. Federal Reserve's latest announcement. On Wednesday, the Fed signaled it would likely implement only a single rate cut this year, a more hawkish stance than previously anticipated.

The Federal Reserve's cautious approach has reverberated through global markets. Following this week's Federal Open Market Committee (FOMC) meeting, futures across major indices ticked lower. The Dow Jones Industrial Average futures dropped 0.63%, while the S&P 500 futures fell 0.33% in pre-market trading. European and UK markets followed suit, with London's FTSE 100 shedding 25.56 points to 8,138.11 by mid-day, and the European Stoxx 600 index decreasing by 2.33 points to 513.71.

Bitcoin, often seen as a digital counterpart to traditional equities, has not been immune to this trend. The cryptocurrency saw a decline of approximately 1% over the past day, trading at $66,889 as of 5:46 a.m. ET, according to The Block's Bitcoin Price Page.

The Fed's revised outlook is a stark contrast to its March projections, which suggested up to three rate cuts by the end of 2024. Despite a slight easing in inflation — from 3.4% in April to 3.3% in May — the Fed opted to maintain interest rates at their 23-year high, reflecting its ongoing concerns about economic stability.

Bitcoin Miners' Profit-Taking Adds Pressure

Another factor contributing to Bitcoin's recent decline is the behavior of miners. Analysts at QCP Capital indicate that miners have been selling their Bitcoin holdings to counterbalance reduced block rewards following April's Bitcoin Halving. "Bitcoin miners are undergoing post-halving capitulation, directly capping the price," noted QCP Capital analysts.

Broader Monetary Trends and Market Expectations

The global financial landscape also plays a crucial role in shaping market expectations. Analysts at Bitfinex observed that several central banks, including the Bank of Canada and the European Central Bank, have already commenced rate cuts. This trend is fostering anticipation of further monetary easing worldwide.

"It seems clear that the Bank of England and the Federal Reserve will follow suit in the coming months. The global liquidity cycle indicates that money supply is likely to increase, which can support asset prices, including cryptocurrencies," Bitfinex analysts told The Block.

As markets adjust to the Fed's latest position, the interplay between traditional financial policies and the evolving dynamics of digital assets like Bitcoin continues to be a focal point for investors worldwide.