Bitcoin Falls 2.2% as Hawkish Fed Signals Weigh on Crypto

Major cryptocurrencies fell across the board after the Federal Reserve left interest rates unchanged but delivered a hawkish message.

The Block reported on June 17 that Bitcoin was trading near $64,150, down about 2.2% over the past 24 hours. Ether fell 3.6%, while XRP and Solana each declined about 3%. Hyperliquid, which hit a record high a day earlier, also slipped 1.5% to about $72.

Safe-haven assets also weakened. Gold fell 2.2%, while silver dropped more than 4%.

The decline appeared to stem less from the Fed's decision to hold rates steady than from revisions to its economic projections.

The Federal Open Market Committee voted unanimously to keep the benchmark rate at 3.5% to 3.75%. The decision was widely expected, but the Fed raised its inflation outlook and signaled that future rate cuts would come more slowly than previously anticipated.

Matt Mena, senior crypto research strategist at 21Shares, said the rate decision was expected, but the meeting carried added significance because it was the first chaired by Kevin Warsh. The real signal came from the revised economic projections.

He said they showed the Fed remains concerned about inflation pressures despite easing geopolitical tensions and a recent decline in energy prices.

The meeting also offered the first look at how Warsh communicates monetary policy.

The FOMC statement was much shorter than those issued under former Chair Jerome Powell and removed forward-guidance language hinting at the future policy path. At a press conference, Warsh said he would focus on conveying facts rather than steering market expectations.

Mena said markets are still digesting a hawkish macro backdrop, though capital rotation and real demand are continuing to emerge in some stronger tokens.