Bitcoin is encountering market conditions similar to early 2022 as the Federal Reserve resumes rate hikes, raising concerns that a potential relief rally could precede a prolonged downturn. Following the initial March 2022 hike, Bitcoin rallied 18% over 12 days before declining approximately 50%, though current macroeconomic factors differ from the broad-based asset selloff and crypto-specific turmoil seen in the previous cycle. The latest rate decision stems from persistent headline inflation above 2% for over five years, even as core inflation has eased to a five-year low of 2.4%. New inflationary pressures have emerged from Middle East geopolitical tensions pushing WTI and Brent crude above $100 per barrel, while the U.S. 10-year Treasury yield has reached 5%. These tightening financial conditions pose fresh headwinds for risk assets as Bitcoin’s bear market approaches the one-year mark.