Bitcoin, ether slide after a hawkish Fed, even as Trump's signed Iran deal lifts stocks
CoinDesk 2026-06-18 04:52:46
Context: Cryptocurrencies, including bitcoin and ether, fell broadly on Thursday despite a signed Iran peace deal that lifted stocks, as investors focused on a more hawkish Federal Reserve stance on inflation. The Fed left interest rates unchanged but signaled higher-for-longer borrowing costs, tightening financial conditions that typically weigh on risk assets like cryptocurrencies. This development occurred under the watch of new Chairman Kevin Warsh, who emphasized the central bank's commitment to delivering price stability.
Key Facts
- The Federal Reserve held interest rates steady at 3.5% to 3.75% in line with expectations, but its updated projections pointed to higher inflation and a slower pace of future rate cuts, with some officials suggesting that rates may still need to rise.
- Bitcoin traded around $63,900, down 3% over 24 hours though still up 2% on the week, while ether fell 3.4% to $1,733, XRP dropped 3.9% to $1.17, and solana lost 3.6% to $71.
- Chairman Kevin Warsh stated that there had been rigorous debate before the vote and vowed the central bank would deliver price stability, marking his first decision as the new head of the Fed.
- Analysts expect bitcoin to remain rangebound between $60,000 and $70,000 absent a major catalyst, such as new U.S. crypto legislation or further U.S.-Iran de-escalation, according to Gerry O'Shea, head of global market insights at Hashdex.
- President Donald Trump signed an interim deal to end the war with Iran and reopen the Strait of Hormuz, which led to a rise in stocks, with S&P 500 futures increasing as much as 0.9% and Nasdaq futures gaining 1.5%, while Brent crude fell toward $78 a barrel.