Bitcoin slid under $69,000 on Tuesday after Federal Reserve Bank of Cleveland President Beth Hammack said policymakers may need to take action “soon” if inflation continues to trend higher.

“Based on the data, I’m more concerned about the growing risks of persistently elevated inflation than the risks to full employment and also that monetary policy may not be ​sufficiently restrictive to bring inflation down to 2 percent,” Hammack made the remarks in a speech prepared for the City Club of Cleveland.

Hammack said the US economy remains strong, with a stable labor market near full employment and financial conditions that continue to support growth. However, she said inflation is above the Fed’s 2% target and moving higher, with broad-based increases across goods and services.

The Cleveland Fed president said it is reasonable for the Fed to hold interest rates steady in the near term, but cautioned that monetary policy may not be restrictive enough to bring inflation back to target. She warned that delaying action could make it more costly to restore price stability.

“If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost,” she emphasized.

Last month, Fed policymakers signaled in the April meeting minutes that rate hikes could be needed if inflation remains above the 2% target. Officials said “some policy firming” may be appropriate if disinflation stalls, citing risks from higher energy costs, tariffs, and elevated service prices.

Hammack’s remarks land ahead of the June 16-17 FOMC meeting, the first under new Fed chair Kevin Warsh, where rates are widely expected to hold at 3.5% to 3.75%.

The hawkish tone weighed on risk assets, with Bitcoin falling below $69,000 as traders reassessed the outlook for interest rates.

Bitcoin retreated after a two-month rally that took prices as high as $82,850, pressured by macro uncertainty and a cluster of negative flows across institutional and on-chain channels.

Sentiment deteriorated after Strategy sold 32 BTC, a small portion of its 843,706 BTC holdings but enough to dent near-term confidence.

On the institutional side, US spot Bitcoin ETFs extended their outflow streak to 11 consecutive days, recording $484 million in net outflows in the latest session. Earlier today, a wallet linked to BlackRock’s IBIT transferred 6,164 BTC, worth more than $427 million, to Coinbase Prime, Arkham Intel data shows.

Separately, Mt. Gox moved 10,423 BTC on Tuesday in its first on-chain activity in two months. Of that, roughly 10,306 BTC valued at about $731 million was sent to a new wallet. The transfers added to bearish sentiment and renewed speculation over creditor repayments.