Cryptocurrency stocks retreated early Thursday and bitcoin skidded back below $70,000. Oil prices continue to jump amid escalating energy attacks in the Middle East, while the Federal Reserve maintained interest rates and signaled one cut this year. In addition, the Securities and Exchange Commission this week announced new definitions for digital assets, and approved Nasdaq's proposal for tokenized trading.
The price of bitcoin early Thursday fell below $69,300, retreating from its Monday high of $75,620. Bitcoin retreated more than 4% over the past 24 hours, but is still down less than 2% across the week, CoinMarketCap data shows.
Meanwhile, spot bitcoin ETFs recorded $163.52 million in outflows on Wednesday, ending a seven-day streak of inflows. Still, the group is on track for four consecutive inflow weeks. Spot bitcoin ETFs generated inflows of $1.52 billion so far in March, after four months of outflows.
"The Federal Reserve's decision to hold rates steady at 3.5% to 3.75%, while maintaining only one projected cut for 2026, signals that geopolitical inflation is becoming a more significant factor in global capital allocation," Gracy Chen, CEO of exchange Bitget, wrote in a Thursday note. She said Chair Powell acknowledged that inflation is cooling more slowly than expected, while higher oil prices from Middle East tensions "suggests monetary easing may remain limited even as broader conditions stay relatively stable."
Higher-For-Longer Policy Weighs On Bitcoin Price
"Rising energy costs, delayed easing expectations, and a firmer dollar are creating a more selective investment environment where broad risk appetite becomes harder to sustain," Chen continued. "The pullback across U.S. technology stocks, gold, and crypto reflects how higher-for-longer policy continues to weigh across asset classes as yields remain elevated and liquidity expectations move further out."
Chen said bitcoin's short-term pressure after the Fed announcement reflects tighter liquidity conditions, while institutional positioning remains "highly sensitive" to any shift in inflation data or geopolitical stability.
"If energy pressures ease or macro data softens, capital could return quickly to scarce assets and stronger crypto exposures, supporting the long-term view that digital assets are becoming more embedded in global portfolio construction," Chen said.
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