Bitcoin crashed below $64,000: the "hawkish" rhetoric of the new Fed chairman collapsed the crypto market
The first cryptocurrency broke through the psychological mark of $64,000, collapsing to $63,680. The market reaction was immediate and harsh — investors sold off assets after the first Federal Reserve meeting chaired by Kevin Warsh. The regulator left the key rate unchanged at 3.5–3.75%, but the signal turned out to be far more alarming than expected.
Rate Not Cut: Dot Plot Divides the Fed
The dot plot revealed a split within the FOMC: nine officials favor keeping or cutting the rate, while another nine support at least one hike by the end of the year. Warsh himself avoided a personal assessment, calling this tool "restrictive" for future policy. However, his rhetoric was unequivocal: more than ten mentions of "price stability" during the press conference.
Markets interpreted this as a "hawkish" signal. The yield on two-year U.S. Treasury notes surged by 14.4 basis points, and stock indices moved lower. Investors concluded: the Fed has no intention of easing policy in the near term.
Crypto Market in the Red: Bitcoin, Ethereum, Solana Lose Ground
Bitcoin plunged to $63,680, losing more than 2% in a few hours. Ethereum followed suit, dropping by 3.15%. Solana and XRP fell by 2.9% and 3.8%, respectively. The only asset in positive territory was TRX, which rose by 0.75% — likely due to internal factors within the Tron ecosystem.
The GMCI 30 index, tracking the 30 largest crypto assets by market capitalization, lost 2.6%. This confirms the systemic nature of the decline: investors are pulling capital from the entire sector, not just Bitcoin.
Gold and Silver Also Under Pressure, but Stock Market Finds Reason to Rise
The price of gold fell by 1.39%, and silver dropped by 2.79%. However, the S&P 500 and Nasdaq stock indices unexpectedly rose — thanks to the signing of an interim agreement with Iran and the opening of the Strait of Hormuz. The geopolitical détente partially offset the pressure from the Fed's hawkish rhetoric.
The regulator identified a surge in energy prices due to the Middle East conflict as the main risk to the economy. Warsh emphasized that returning inflation to the 2% target is an "unconditional" commitment.
My analysis: The market situation is a classic example of "sell the news." Investors had priced in a rate cut, but instead received a signal of a possible hike. Until the Fed changes its rhetoric, Bitcoin will remain under pressure. The $60,000 level becomes a key support — a break below it would open the door to $55,000.