It was the first decision under new Chairman Kevin Warsh, who said there was rigorous debate before the vote and promised the central bank would achieve price stability. A more aggressive Federal Reserve means tighter financial conditions, which tend to drain the liquidity that fuels risk assets like cryptocurrencies.
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 agreement into effect.
S&P 500 futures rose as much as 0.9% and Nasdaq futures gained 1.5%, while Brent crude fell to $78 a barrel. Cryptocurrencies didn’t take up that offer, a sign that, for now, they’re dealing more with the Federal Reserve than with geopolitical relief.
Analysts expect Bitcoin to remain range-bound until a clearer catalyst arrives.
“We expect Bitcoin to continue trading in the $60,000 to $70,000 range in the coming weeks without any major catalysts,” said Gerry O’Shea, head of global market analysis at Hashdex, naming the signing of the CLARITY Act, a crypto market structure bill, or further de-escalation between the United States and Iran as the type of trigger that could break the range.
He added that sentiment has been weak as IPOs and AI stocks diverted attention from cryptocurrencies, but he expects capital to return as institutional interest grows and regulation is formalized.
