Crypto markets sold off broadly on Thursday, largely ignoring the boost from a signed Iran peace agreement that lifted equities, after the Federal Reserve kept interest rates unchanged but reinforced a more hawkish stance, prioritizing inflation control over growth concerns.
Bitcoin traded near $63,900, down about 3% over 24 hours, though still up roughly 2% on the week, according to CoinDesk data. The decline was widespread across major tokens: Ether fell 3.4% to $1,733, XRP dropped 3.9% to $1.17, and Solana slid 3.6% to $71. Hyperliquid’s HYPE, which had been one of the strongest performers earlier in the week, led losses with a 7.2% drop to $69, though it still holds a weekly gain of around 28%. Tron was the only major token in positive territory, edging up 0.9%.
The main pressure point was the Federal Reserve. While it left rates unchanged at 3.5%–3.75% as expected, updated projections pointed to stickier inflation and a slower path toward future rate cuts, with some officials even leaving the door open to further hikes.
It was the first policy decision under new Fed Chair Kevin Warsh, who emphasized internal debate and reaffirmed the central bank’s commitment to restoring price stability. The overall message tilted hawkish, reinforcing expectations of tighter financial conditions that typically drain liquidity from risk assets such as crypto.
Equity markets, however, responded more positively to geopolitical developments. President Donald Trump signed a preliminary peace agreement with Iran aimed at ending the conflict and reopening the Strait of Hormuz, improving risk sentiment in traditional markets.
S&P 500 futures rose as much as 0.9%, while Nasdaq futures gained up to 1.5%. Brent crude slipped toward $78 per barrel. Crypto, by contrast, failed to participate in the equity rally, highlighting its current sensitivity to Fed policy rather than geopolitical relief.
Analysts expect Bitcoin to remain range-bound unless a stronger catalyst emerges. “We expect bitcoin to continue to trade in the $60,000 to $70,000 range in the coming weeks absent any major catalyst,” said Hashdex’s Gerry O’Shea, citing potential triggers such as the CLARITY Act becoming law or further easing in US-Iran tensions.
He added that sentiment remains subdued as capital flows toward IPOs and AI-related stocks, though he expects rotation back into crypto as institutional participation increases and regulatory clarity improves.
Overall, the market structure still looks like consolidation rather than capitulation. Bitcoin holding in the low $64,000 range suggests selling pressure may be easing, but upside remains capped as tighter Fed policy continues to limit liquidity.
