Crypto Market Slips as Fed Delivers Hawkish Projections Under New Chair

Crypto Prices Decline Following Fed Decision

Major digital assets moved lower after the Federal Open Market Committee (FOMC) voted 12-0 to maintain the federal funds rate at 3.5% to 3.75%. The outcome was broadly anticipated and largely priced in ahead of the meeting, but the accompanying projections indicated a slower path toward lower rates and higher inflation forecasts than those published in March.

Bitcoin (BTC) traded around $64,150, down approximately 2.2% over the past 24 hours. Ether (ETH) fell 3.6%, according to The Block’s crypto price page. Other leading cryptocurrencies also weakened, with XRP (XRP) and Solana (SOL) each slipping by around 3%.

Hyperliquid’s token (HYPE), which had reached a new all-time high the previous day, declined 1.5% to $72. The broader market was similarly pressured, with the GMCI 30 index of the 30 largest cryptocurrencies by market capitalization down about 2.6%, extending its year-to-date loss to nearly 36%.

“Taken together, the picture is one of a crypto market absorbing a hawkish macro backdrop while rotation and genuine demand continue to surface in the strongest names,” said Matt Mena, senior crypto research strategist at 21Shares.

Warsh’s First Meeting Highlights Policy Communication Shift

The meeting was the first chaired by Kevin Warsh, adding focus to how the Federal Reserve would present its policy under new leadership. “The Fed’s decision to hold rates was fully expected, but it carried unusual weight as the first meeting chaired by Kevin Warsh,” Mena said.

Mena noted that “the real signal came from the updated projections,” emphasizing that the revised forecasts indicate ongoing concern among policymakers about inflation pressures, despite easing geopolitical tensions and a recent decline in energy prices.

The post-meeting statement also reflected a change in communication style. It was substantially shorter than those issued under former Chair Jerome Powell and omitted the forward-guidance language that had been a hallmark of Powell’s tenure. Warsh described the new format as focused on presenting “the facts” rather than guiding market expectations.

Traditional safe-haven assets mirrored the weakness seen in crypto markets. Gold fell 2.2%, while silver dropped by about 4% following the Fed’s decision and projections.

FAQ

What did the Federal Reserve decide at its latest meeting?
Answer: The Federal Open Market Committee voted 12-0 to keep the target federal funds rate unchanged at 3.5% to 3.75%.

How did major cryptocurrencies react to the decision?
Answer: Bitcoin fell about 2.2% to around $64,150, ether declined 3.6%, XRP and Solana each dropped roughly 3%, and the GMCI 30 index was down about 2.6%.

Why is this Fed meeting considered significant for markets?
Answer: It was the first meeting chaired by Kevin Warsh, and the Fed released more hawkish economic projections, including higher inflation forecasts and a slower expected path to lower rates.

How did traditional safe-haven assets perform after the announcement?
Answer: Gold fell by 2.2%, while silver declined by about 4% following the Fed’s decision and updated projections.