Bitcoin (BTC) Slides 3% as Federal Reserve Adopts Hawkish Tone on Inflation

Key Takeaways

• Bitcoin declined 3% to approximately $63,900 while Ether, XRP, and Solana each shed more than 3%
• Federal Reserve maintained rates at 3.5%–3.75% while raising inflation projections and signaling fewer cuts ahead
• Fed Chair Kevin Warsh conducted his inaugural policy meeting, emphasizing commitment to price stability
• President Trump finalized an interim peace agreement with Iran, boosting equity futures while crypto remained weak
• Market experts anticipate Bitcoin will trade within the $60,000–$70,000 corridor absent significant catalysts

Digital asset markets experienced widespread declines Thursday following a more restrictive stance from the Federal Reserve, despite President Trump’s Iran peace accord propelling equity futures upward.

Digital Assets Retreat Following Fed Policy Announcement

Among prominent cryptocurrencies, Hyperliquid’s HYPE suffered the steepest losses, plunging 7.2% to $69. Despite Thursday’s decline, the token remains up approximately 28% across the past week, maintaining its position as the period’s top performer.

Tron stood as the sole major digital currency posting gains, advancing 0.9%.

The Federal Reserve maintained its benchmark interest rate within the 3.5% to 3.75% range, matching market consensus. However, revised economic projections revealed elevated inflation expectations and a reduced trajectory for future rate reductions.

Several Federal Reserve officials indicated potential rate increases remain on the table. This more restrictive monetary stance typically constrains financial conditions, directing capital away from speculative investments including cryptocurrencies.

Kevin Warsh presided over his first Federal Open Market Committee meeting as chairman. He disclosed that officials engaged in extensive deliberation before reaching their decision and reaffirmed the central bank’s dedication to achieving price stability.

Iran Peace Agreement Elevates Equities While Crypto Lags

Concurrently, President Trump and Iran’s leadership executed an interim peace framework that took effect Thursday. The arrangement may restore commercial shipping through the Strait of Hormuz and eliminate sanctions targeting Iranian petroleum exports.

Nasdaq 100 futures jumped approximately 1.4%. S&P 500 futures advanced 0.8%. Dow futures gained 0.6%. Brent crude oil retreated toward $78 per barrel.

Cryptocurrencies failed to mirror equity market strength. This divergence indicates digital assets are responding primarily to monetary policy rather than geopolitical developments.

Thursday marked the final trading session before markets close Friday in observance of the Juneteenth federal holiday.

Discussions addressing extended-term matters, including Iran’s nuclear capabilities, are scheduled to proceed throughout the subsequent 60-day period.

Expert Perspectives on Market Direction

Gerry O’Shea, head of global market insights at Hashdex, projected Bitcoin will likely consolidate between $60,000 and $70,000 during upcoming weeks absent a substantial market driver.

He identified two prospective catalysts: presidential approval of the CLARITY Act, legislation addressing crypto market infrastructure, or additional progress in US-Iran diplomatic relations.

O’Shea observed that market sentiment has suffered as initial public offerings and artificial intelligence equities have captured investor attention away from digital assets. He anticipates capital will return as institutional participation expands and regulatory frameworks crystallize.

Bitcoin has maintained support around the lower $64,000 level, suggesting intense selling momentum may be subsiding. Nevertheless, purchasers remain circumspect given the Federal Reserve’s restrictive policy posture.

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