BTC stabilizes at $63,000 after Fed signals persistent inflation risks, lifting July rate-hike probabilities to nearly 40%.
Bitcoin (BTC) hovered around $63,000 on Friday, failing to recover from recent losses as traders digested a hawkish Federal Reserve stance. The Fed’s latest meeting left interest rates unchanged but signaled ongoing inflation concerns, pushing odds of a July rate hike to nearly 40%.
The Fed’s statement highlighted elevated inflation, partly driven by energy sector shocks, and reiterated its commitment to price stability. New Fed Chair Kevin Warsh’s tone surprised markets, avoiding dovish cues and reinforcing a cautious outlook. BTC/USD remained range-bound after dropping to eight-day lows earlier in the week.
Geopolitical tensions, including Iran’s posturing over the Strait of Hormuz, added to market uncertainty. Analysts warned of potential “black swan” events amid the current bearish trend, though BTC showed limited volatility in the short term.