The Federal Reserve maintained interest rates but indicated a stronger concern for inflation than for economic growth in Chair Kevin Warsh's inaugural meeting.
By Shaurya Malwa Jun 18, 2026, 4:52 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Despite a peace agreement with Iran boosting stocks, cryptocurrencies experienced a decline as investor focus shifted to the Federal Reserve's hawkish stance on inflation.
- The Fed opted to keep interest rates steady but indicated a prolonged period of higher borrowing costs, a move that often pressures risk assets like bitcoin and ether.
- Market analysts predict that bitcoin will likely stay within the $60,000 to $70,000 range without significant catalysts such as new U.S. crypto regulations or further de-escalation in U.S.-Iran tensions.
On Thursday, cryptocurrencies experienced a downturn, disregarding a signed peace deal with Iran that positively influenced stock markets, following the Federal Reserve's decision to maintain interest rates while expressing greater concern for inflation than economic growth.
Bitcoin was trading at about $63,900, reflecting a 3% decrease within 24 hours but a 2% increase over the week, according to CoinDesk. The downturn was widespread; ether fell by 3.4% to $1,733, XRP decreased by 3.9% to $1.17, and solana declined by 3.6% to $71. Hyperliquid's HYPE, which had been the week's top performer, dropped 7.2% to $69, although it remains up roughly 28% over the past week. Tron was the only major cryptocurrency to show a gain, increasing by 0.9%.
The catalyst for the decline was the Fed's decision. It maintained rates at 3.5% to 3.75%, consistent with market expectations, but its revised forecasts indicated a higher inflation outlook and a slower pace of future rate reductions, with some officials suggesting that rates might still need to increase.
This meeting marked the first under new Chairman Kevin Warsh, who noted that there was significant debate prior to the vote and emphasized the central bank's commitment to achieving price stability. A more hawkish Fed typically results in tighter financial conditions, which can reduce the liquidity available for riskier assets like cryptocurrencies.
In contrast, stocks reacted positively to the week's developments, buoyed by President Donald Trump's signing of an interim agreement to resolve the conflict with Iran and reopen the Strait of Hormuz.
S&P 500 futures climbed as much as 0.9%, and Nasdaq futures rose by 1.5%, while Brent crude oil prices dipped toward $78 per barrel. However, cryptocurrencies did not benefit from this positive sentiment, indicating their current dependence on the Fed's policies rather than geopolitical developments.
Market analysts project that bitcoin will remain in a narrow trading range until a clearer catalyst emerges. "We expect bitcoin to continue to trade in the $60,000 to $70,000 range in the coming weeks absent any major catalyst," stated Gerry O'Shea, head of global market insights at Hashdex, identifying the passing of the CLARITY Act, a proposed crypto market-structure bill, or further US-Iran de-escalation as potential triggers for a breakout from this range. He noted that sentiment has been weak as IPOs and AI stocks have drawn attention away from crypto, but anticipates that capital will flow back into the crypto market as institutional interest increases and regulation becomes more formalized.
The current price movements suggest a consolidation phase rather than a capitulation. Bitcoin has stabilized in the low $64,000s, indicating that the most intense selling pressure may be subsiding, although buyers remain cautious due to the Fed's tighter monetary policy limiting potential gains.
Latest Crypto News- 1Next bull run will be slower, less volatile as investors' crypto appetite evolves, Bitwise CIO says1 hour ago
- 2CME chief executive says company plans to sue CFTC after perpetual futures approval1 hour ago
- 3Kentucky targets prediction markets, puts red state in potential clash with Trump team7 hours ago
- 4Fidelity joins Wall Street's race to manage stablecoin reserves8 hours ago
- 5Here is how Coinbase plan to survive the crypto downturn by ditching its reliance on trading fees9 hours ago
- 6Bitcoin layer-2s face a bear-market reality check9 hours ago
- 7FIFA wanted Avalanche's blockchain to help curb World Cup ticket scalping. Here's how it's going9 hours ago
- 8Fed holds rates steady in first decision under new Chairman Kevin Warsh11 hours ago
- 9Crypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budget12 hours ago
- 10Crypto Long & Short: The measure of a maturing market12 hours ago
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
View Full ReportMore From Markets