Bitcoin Falls Toward $64,000 After Hawkish Fed Signals
Bitcoin declined on Thursday and erased much of its recent recovery as investors responded to a more hawkish outlook from the Federal Reserve.
Expectations for another U.S. interest rate increase later in 2026 strengthened following the central bank’s latest policy meeting. This shift placed additional pressure on cryptocurrencies and other speculative assets.
Bitcoin fell approximately 1.2% to $64,337.60 during morning trading in the United States.
Federal Reserve Outlook Pressures Bitcoin
The Federal Reserve kept interest rates unchanged, in line with market expectations. However, the meeting revealed that a growing number of policymakers are considering another rate increase before the end of 2026.
Persistent inflation remains a major concern for the central bank. As a result, investors have started preparing for the possibility that U.S. monetary policy will remain restrictive for longer.
New Federal Reserve Chair Kevin Warsh also indicated that the central bank could revise how it communicates future interest rate decisions. His remarks added another layer of uncertainty to financial markets.
According to the CME FedWatch Tool, traders began pricing in at least one 25-basis-point rate increase by the end of 2026.
Higher interest rates generally create difficult conditions for Bitcoin and the wider cryptocurrency market. They increase the appeal of lower-risk, interest-bearing assets such as government bonds while reducing demand for speculative investments.
U.S. and Iran Sign Framework Peace Agreement
Positive geopolitical news provided only limited support for Bitcoin.
Reports released on Wednesday evening indicated that the United States and Iran had remotely signed a memorandum of understanding designed to end their conflict and reopen important Middle Eastern shipping routes.
The preliminary agreement could lead to further negotiations aimed at reaching a permanent and comprehensive peace deal. Iran’s nuclear programme is expected to become one of the central issues during the next stage of discussions.
The announcement encouraged a broader risk-on move across financial markets. However, investors mainly focused on artificial intelligence and semiconductor stocks with stronger earnings prospects.
More speculative assets, including cryptocurrencies and some metals, attracted significantly less demand.
Crypto Continues to Trail AI and Technology Stocks
The preference for technology and AI-related companies has strengthened in recent months.
Investors have increasingly directed capital toward businesses with strong fundamentals rather than highly volatile crypto assets. This trend has contributed to continued withdrawals from cryptocurrency investment products, particularly spot crypto exchange-traded funds.
The U.S.-Iran agreement was not enough to reverse that pattern. Bitcoin and the broader digital asset market continued to underperform leading technology stocks.
Ark Invest Buys Coinbase and Block Shares
Cathie Wood’s Ark Invest added approximately $18.4 million worth of Coinbase Global shares on Wednesday.
The investment firm purchased 111,799 Coinbase shares across three funds: the ARK Innovation ETF, ARK Next Generation Internet ETF and ARK Fintech Innovation ETF.
The ARK Innovation ETF also acquired 236,759 shares of Block, valued at approximately $17.2 million.
At the same time, Ark reduced its exposure to Robinhood Markets. The firm sold 275,572 Robinhood shares worth close to $29 million.
Altcoins Follow Bitcoin Lower
Most major cryptocurrencies moved lower alongside Bitcoin and received little support from the U.S.-Iran peace framework.
Ether declined by approximately 0.6% to $1,750.19, while XRP dropped around 2.6%.
Solana, Cardano and BNB recorded losses ranging from 1% to 3%.
The weakness also affected the memecoin sector. Dogecoin and the Official Trump token each fell by approximately 1.7%.
