Bitcoin and other cryptocurrencies fell broadly on Thursday, as a more hawkish-than-expected Federal Reserve outweighed a market-lifting Iran peace deal. The Fed kept interest rates unchanged at 3.5%-3.75% in Chair Kevin Warsh's first meeting, but signaled higher inflation and a slower pace of future rate cuts, with some officials even suggesting rates may need to rise. This tightening of financial conditions typically drains liquidity from risk assets like crypto. Bitcoin dropped 3% to around $63,900, ether fell 3.4% to $1,733, and solana lost 3.6%. Even Hyperliquid's HYPE, a standout gainer, fell 7.2%, though still up 28% on the week. Tron was the only major gainer, up 0.9%. In contrast, stocks rose after President Donald Trump signed an interim peace deal with Iran, reopening the Strait of Hormuz, with S&P 500 futures up 0.9%. Analysts expect bitcoin to remain rangebound between $60,000 and $70,000 until a major catalyst emerges, such as the CLARITY Act passing or further US-Iran de-escalation. They view the price action as consolidation rather than capitulation, with bitcoin holding in the low $64,000s, suggesting selling pressure may be easing but upside capped by tighter Fed policy.

Key facts

• Fed holds rates at 3.5%-3.75% but signals higher inflation, slower rate cuts, possibly more hikes.
• Bitcoin falls 3% to $63,900; ether down 3.4%, solana 3.6%, HYPE falls hardest at 7.2%.
• Stocks rise 0.9% after Trump signs Iran peace deal reopening Strait of Hormuz.
• Analysts expect bitcoin rangebound $60k-$70k until catalyst like CLARITY Act or Iran deal.
• Price action seen as consolidation; selling pressure easing but Fed caps upside.

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