$FED HOLD RATES
Hawkish Tone Hits Crypto 📉
The U.S. Federal Reserve kept interest rates unchanged at 3.50%–3.75%, but the statement and projections were more hawkish than markets expected. Several Fed officials now see the possibility of another rate hike later in 2026, while inflation forecasts were revised higher.
Reuters
Impact on Crypto
Bitcoin and major altcoins sold off after the announcement.
A stronger U.S. dollar and rising bond yields reduced demand for risk assets like crypto.
Markets are now pricing a higher probability of a rate hike later this year, which could keep pressure on BTC, ETH, and altcoins.
The Wall Street Journal ..
Trading Picture 📉 Short-term: Bearish to neutral
🔹 Resistance: BTC around $66k–$67k
🔹 Support: BTC around $63k–$64k
🔹 If the Fed remains hawkish and inflation stays elevated, crypto could face further volatility.
Summary:
The Fed's rate hold was expected, but the hawkish tone surprised markets. Higher-rate expectations strengthened the dollar and triggered selling across crypto markets, making the near-term outlook cautious until fresh inflation and economic data are released.
Reuters