It was the first decision under new chairman Kevin Warsh, who said there had been a rigorous debate before the vote and promised the central bank would deliver price stability. A more hawkish Fed means tighter financial conditions, which tends to drain the liquidity that fuels risk assets like crypto.
Stocks took the week’s news better, helped by a separate development. President Donald Trump signed an interim agreement to end the war with Iran and reopen the Strait of Hormuz, putting the deal into effect.
S&P 500 futures rose as much as 0.9% and Nasdaq futures rose 1.5%, while Brent crude fell toward $78 a barrel. barrel. Crypto didn’t catch that bid, a sign that it’s more about the Fed than the geopolitical easing for now.
Analysts expect bitcoin to remain range-bound until a clearer catalyst arrives.
“We expect bitcoin to continue to trade in the $60,000 to $70,000 range in the coming weeks without any major catalyst,” said Gerry O’Shea, head of global market insights at Hashdex, naming the signing of the CLARITY Act, a crypto market structure law, into law or further US-Iran de-escalation that could break that kind of de-escalation.
He added that sentiment has been weak as IPOs and AI stocks drew attention away from crypto, but expects capital to rotate back as institutional interest grows and regulation formalizes.
