It is the first move by new President Kevin Warsh, who said a rigorous debate took place before the vote and promised the central bank would ensure price stability. A more hawkish Fed means tighter financial conditions, which tends to drain the liquidity that fuels risky assets like crypto.
Stocks better received the week’s news, helped by a separate development. President Donald Trump signed an interim agreement to end the war with Iran and reopen the Strait of Hormuz, effectively putting the agreement into effect.
S&P 500 futures rose 0.9% and Nasdaq futures rose 1.5%, while Brent crude fell to $78 a barrel. Crypto has not seized on this offer, a sign that it is trading more on the Fed than geopolitical relief at the moment.
Analysts expect Bitcoin to remain range-bound until a clearer catalyst arrives.
“We expect bitcoin to continue trading in the $60,000-$70,000 range in the coming weeks absent a major catalyst,” said Gerry O’Shea, head of global market research at Hashdex, citing the signing of the CLARITY Act, a crypto market structure bill, or further de-escalation between the United States and Iran as the type of trigger that could break the range.
He added that sentiment was weak as IPOs and AI stocks diverted attention away from crypto, but he expects capital to return as institutional interest increases and regulation becomes formalized.
