Bitcoin fell below $64,000: a "hawkish" signal from the new Fed chair
The cryptocurrency market took a painful hit following the first Federal Reserve meeting under the leadership of new Chairman Kevin Warsh. The leading cryptocurrency broke below the psychologically important level of $64,000, reaching approximately $63,680. This is a direct consequence of the tightening rhetoric from monetary authorities.
The key interest rate was kept in the range of 3.5–3.75% per annum, which in itself was not a surprise. However, the market was unprepared for the signal of a possible rate hike by the end of the year. The dot plot of FOMC members' votes showed a split: nine officials favor maintaining or cutting the rate, but another nine support at least one increase. Warsh declined to give a personal assessment, calling this tool "restrictive" for future policy, which only heightened uncertainty.
During the press conference, the new Fed chair used the term "price stability" more than ten times, which investors unequivocally interpreted as a "hawkish" stance. The yield on two-year U.S. Treasury bonds surged by 14.4 basis points, and stock indices moved lower — a classic reaction to monetary policy tightening.
Cryptocurrencies and metals under pressure
Bitcoin was no exception. Ethereum lost 3.15%, while Solana and XRP fell by 2.9% and 3.8%, respectively. The only "green" asset in the top 10 was TRX, which gained 0.75%. The GMCI 30 index, which tracks the largest digital assets by market capitalization, lost 2.6%.
Interestingly, traditional safe-haven assets also came under pressure: gold fell by 1.39%, and silver by 2.79%. This suggests that investors are moving into cash, anticipating further tightening.
Against this backdrop, the stock market showed paradoxical dynamics: the S&P 500 and Nasdaq indices rose due to news of the signing of an interim agreement with Iran and the reopening of the Strait of Hormuz. However, this positive development did not provide support for cryptocurrencies.
My analysis: The market clearly underestimated the new Fed leadership's determination to fight inflation at any cost. If Warsh continues to maintain a "hawkish" course, we could see further pressure on risk assets, including bitcoin. The key support level is currently the $62,000–$63,000 zone, and a break below it would open the door to a deeper correction.