Bitcoin drops on FOMC statement and press conference
Early Thursday, the cryptocurrency market displayed mixed reactions following the Federal Reserve's announcement, which diminished hopes for interest-rate cuts. Bitcoin notably dropped after the FOMC released its rate statement and during Fed Chair Powell's press conference. Prior to this, Bitcoin had briefly climbed above $69,000, spurred by unexpectedly mild U.S. consumer inflation data, but these gains were subsequently erased.
The downturn in Bitcoin occurred as Federal Reserve officials projected only one interest-rate cut for this year. Like other high-risk assets, cryptocurrencies tend to behave in an inverse fashion to yields. As such, higher bond yields are acting as a headwind, as market expectations for Federal Reserve rate cuts are scaled back.
Ether, the second-largest cryptocurrency, also declined, although it has appreciated by 19% over the past month. Recently, the Securities and Exchange Commission approved crucial rule changes to permit the trading of spot Ether exchange-traded funds. However, final approval for the launch of these products could still take several weeks or months.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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