Bitcoin and ether drop after the Federal Reserve maintains rates but warns of persistent inflation pressures.
Bitcoin and ether led a broad cryptocurrency decline after the Federal Reserve held interest rates steady but signaled a more hawkish stance on inflation. Bitcoin fell 3% to $63,900, while ether dropped 3.4% to $1,733 in 24 hours, despite a market-boosting Iran peace deal signed earlier in the day.
The Fed left its benchmark rate unchanged at 3.5% to 3.75%, matching expectations, but updated projections indicated higher inflation and fewer rate cuts ahead. Analysts noted that tighter financial conditions typically weigh on risk assets, including cryptocurrencies, which have traded between $60,000 and $70,000 in recent weeks.
Other major tokens followed the downward trend, with XRP down 3.9% to $1.17 and solana losing 3.6% to $71. Hyperliquid’s HYPE, the week’s top gainer, fell 7.2% to $69, though it remains up 28% over seven days. Tron was the sole major token in positive territory, rising 0.9%.