CoinMeta data: Bitcoin has recently fallen by about 40%, repeating the trend of 2022. The Federal Reserve raised interest rates by 25 basis points on Wednesday, raising the benchmark rate to 3.75% to 4.00%, which is the first rate hike in three years. The market expects further tightening of 75 basis points in the next six months. Bitcoin reached a peak of around $69,000 in November 2021 and fell by about 40% when interest rates were first hiked in March 2022. Currently, the price of Bitcoin is below 40% of its $126,000 high. After the rate hike, Bitcoin rose by about 18% in the following 12 days but then fell by about 50% again. The reason for the Federal Reserve's rate hike is inflation, with the annual inflation rate exceeding 2% for over five years, although core inflation has dropped to 2.4%. Geopolitical tensions in the Middle East have pushed the price of WTI and Brent crude oil above $100 per barrel, threatening to reignite inflation and squeeze growth. Bitcoin's bear market is about to reach one year, and whether a new round of rate hikes will prolong this downward trend remains to be seen.