India, July 4 -- Bitcoin has dropped to around $57,700-$59,800, hitting its lowest level in about 20-21 months, before recovering slightly during US trading. Even after the small recovery, Bitcoin remains more than 50% below its record high of over $126,000 reached in October 2025.

Investors are worried because the US Federal Reserve is still focused on bringing inflation back to its 2% target, according to GuruFocus. Last month, Federal Reserve Chairman Kevin Warsh said the central bank would not tolerate high inflation. On Tuesday, Cleveland Fed President Beth Hammack told CNBC that interest rate hikes may still be needed to control inflation.

When interest rates stay high, investors usually move money into safer assets like US govern...