Bitcoin and Ether Fall After Hawkish Fed Signals Despite Iran Peace Deal Boost

Bitcoin and major cryptocurrencies moved lower today after the US Federal Reserve kept interest rates unchanged but signaled stronger concerns about inflation during Chair Kevin Warsh’s first policy meeting.

Bitcoin traded near $63,800, falling around 3.1% over the past 24 hours. Ether dropped 3.5% to $1,727, while Hyperliquid’s HYPE token posted the sharpest decline among major digital assets, falling more than 7%, although it still remains higher on a weekly basis.

The Federal Reserve kept rates between 3.5% and 3.75%, matching market expectations. However, updated projections suggested fewer future rate cuts and raised concerns that inflation may remain persistent for longer than expected.

Markets React Differently to Fed and Iran Developments

Traditional stock markets reacted positively after President Donald Trump signed an interim agreement aimed at ending the conflict with Iran and reopening the Strait of Hormuz. The deal lifted investor confidence, helping S&P 500 and Nasdaq futures move higher while oil prices declined.

Crypto markets, however, remained focused on the Federal Reserve’s tighter monetary outlook. Analysts said higher interest rates usually reduce liquidity available for risk assets such as cryptocurrencies.

Market analysts expect bitcoin to remain between $60,000 and $70,000 until stronger catalysts, including clearer US crypto regulations or further geopolitical stability, improve investor sentiment.