Bitcoin Falls Below $70K Amid Fed and Geopolitical Pressures
Bitcoin declined sharply on Thursday, falling below the key $70,000 level as investors reacted to the latest Federal Reserve decision and rising geopolitical tensions in the Middle East.
By 09:07 ET (13:09 GMT), the world’s largest cryptocurrency dropped 3.8% to $69,387. Earlier in the week, Bitcoin had climbed close to $76,000 and was still trading above $74,000 in the previous session.
Fed Signals Ongoing Inflation Risks
Market pressure intensified after the Federal Reserve kept interest rates unchanged while warning about persistent inflation risks. Policymakers highlighted that rising energy prices could slow the disinflation process and potentially delay future rate cuts.
The central bank also revised its 2026 inflation forecast higher to 2.7%, up from 2.4%, reinforcing concerns that price pressures may remain elevated.
Rising Oil Prices Add to Market Uncertainty
At the same time, crude oil prices surged above $112 per barrel following renewed conflict in the Middle East. Iran launched attacks on key energy infrastructure after strikes on its South Pars gas field.
The Bank of Japan also held its policy steady and noted that developments in the Middle East and fluctuations in oil prices could influence inflation trends going forward.
Stronger Dollar and Higher Yields Weigh on Crypto
Cryptocurrencies came under additional pressure as rising oil prices pushed bond yields higher and strengthened the U.S. dollar. Digital assets have increasingly moved in line with broader macroeconomic trends, making them sensitive to shifts in interest rate expectations.
Global equity markets also weakened, with U.S. stock futures edging lower and both Asian and European markets posting losses. Investors appeared to shift away from riskier assets amid growing uncertainty.
Altcoins Extend Losses as Market Weakens
The broader cryptocurrency market followed Bitcoin’s decline, with major altcoins posting notable losses.
Ethereum, the second-largest cryptocurrency, fell 5.2% to $2,119. Meanwhile, XRP dropped 2.2% to $1.43.
Other major tokens also declined, with Solana losing 2.9% and Cardano falling 4.7%. Among meme coins, Dogecoin slipped 3.6%, reflecting widespread weakness across the sector.
