Bitcoin fell 2.68% this week to $70,538 as Federal Reserve hawkish signals overshadowed a landmark regulatory decision in the United States. The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) jointly classified 16 major crypto assets, including Bitcoin and Ethereum, as digital commodities, ending a decade-long period of regulatory uncertainty. However, the Federal Reserve's decision to hold rates steady while raising inflation expectations triggered a sharp market reaction, with Bitcoin long positions liquidating over $142 million in a single day, and the total cryptocurrency market cap falling to $2.42 trillion. Analysts point out that cryptocurrencies have a 92% correlation with gold, highlighting their role as an inflation hedge tool under macroeconomic pressure.