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Bitcoin falls below $71K amid Fed rate stance
Bitcoin fell sharply on Thursday, dropping below $71,000 as investors assessed the Federal Reserve’s hawkish stance amid a surge in oil prices driven by escalating tensions in the Middle East.
The world’s largest cryptocurrency declined 4.2% to $70,817.4 as of 06:25 GMT.
Bitcoin traded above the $74,000 level in the previous session, having reached nearly $76,000 earlier this week.
Traders scale back bets on Fed rate cuts amid inflation risks
Pressure on digital assets intensified after the Federal Reserve kept interest rates unchanged but signaled persistent inflation risks, particularly from energy markets.
Officials warned that rising oil prices could complicate the disinflation path and delay potential rate cuts.
The central bank raised its 2026 inflation forecast to 2.7% from 2.4%, signaling concern that price pressures may remain persistent.
Oil prices rose above $110 per barrel on Wednesday and continued climbing in Asian trading on Thursday after Iran attacked several energy facilities in the Middle East following a strike on its South Pars gas field.
Cryptocurrencies, which are increasingly trading in line with macroeconomic trends, came under pressure as higher oil prices lifted bond yields and supported the dollar.
U.S. stock indices also closed lower on Wednesday, while Asian stocks declined in early Thursday trading.
The Bank of Japan kept interest rates unchanged on Thursday and warned that the future course of the Middle East conflict and crude oil prices could affect Japan’s inflation trajectory.
Kraken delays IPO plans, citing difficult market conditions – CoinDesk
Crypto exchange Kraken has paused plans for a multi-billion dollar initial public offering due to challenging market conditions, CoinDesk reported.
The company, which confidentially filed a draft S-1 with the U.S. Securities and Exchange Commission in November, will now likely delay its listing until market sentiment improves, according to the report.
This move comes amid a downturn in crypto markets since late 2025, with weaker asset prices and trading volumes weighing on valuations and investor appetite.
Kraken was valued at $20 billion after raising $800 million, highlighting its scale despite the difficult environment.
Crypto prices today: altcoins also fall; Ether drops 6%
Most altcoins also declined on Thursday, continuing the downturn.
The world’s second-largest cryptocurrency Ethereum fell 6% to $2,193.41.
The world’s third-largest cryptocurrency XRP dropped 3.5% to $1.47.
Solana and Polygon each fell 4%, while Cardano plunged 6%.
Among meme tokens, Dogecoin fell 5%.
See also: "Bitcoin drops below $73,000 amid rising US Producer Price Index"
