Bitcoin, ether slide after a hawkish Fed, even as Trump's signed Iran deal lifts stocks
Key takeaways
- Bitcoin traded around $63,900, down 3% over 24 hours though still up 2% on the week, per CoinDesk data.
- It was the first decision under new Chairman Kevin Warsh, who said there had been rigorous debate before the vote and vowed the central bank would deliver price stability.
- Stocks took the week's news better, helped by a separate development.
Bitcoin traded around $63,900, down 3% over 24 hours though still up 2% on the week, per CoinDesk data. The selling was broad. Ether fell 3.4% to $1,733, XRP dropped 3.9% to $1.17 and solana lost 3.6% to $71. Hyperliquid's HYPE, the standout gainer all week, fell hardest at 7.2% to $69, though it remains up about 28% over seven days. Tron was the lone major in the green, up 0.9%.
The driver was the Fed. It left rates unchanged at 3.5% to 3.75%, in line with expectations, but its updated projections pointed to higher inflation and a slower pace of future rate cuts, and some officials floated the possibility that rates may still need to rise.
It was the first decision under new Chairman Kevin Warsh, who said there had been rigorous debate before the vote and vowed the central bank would deliver price stability. A more hawkish Fed means tighter financial conditions, which tend to drain the liquidity that fuels risk assets like crypto.