Bitcoin Slips After Fed Holds Rates Amid Inflation and Iran Tensions
Bitcoin fell sharply Wednesday after the Federal Reserve kept its benchmark fed funds rate at 3.50%-3.75%, in line with expectations.
The cryptocurrency had already dropped nearly 4% ahead of the announcement, pressured by rising oil prices and disappointing inflation data. Following the decision, bitcoin traded around $71,600.
U.S. stocks also declined, with the Nasdaq and S&P 500 each down 0.55%, while the 10-year Treasury yield ticked up to 4.21%.
The Fed cited uncertainty around the economic impact of recent Middle East developments. The policy vote was 11-1, with Stephen Miran dissenting in favor of a 25-basis-point cut.
Fed projections showed inflation expectations rising to 2.7% for 2026, before easing to 2.2% in 2027. The “dot plot” signals one 25-basis-point cut in 2026 and another in 2027.
Investors will now focus on Chair Jerome Powell’s post-meeting press conference at 2:30 p.m. ET for additional guidance.
