Crypto
Bitcoin Lags as Fed's Hawkish Stance Pushes Rate Cut Further Out
The Federal Reserve's hawkish stance has kept crypto markets subdued, with Bitcoin slipping 2.5% on Friday as equities surged.
Bitcoin fell to $62,464, while the S&P 500 climbed 1.7% to 7,437 and the Nasdaq gained 2.8%. Ether dropped 3.1% to $1,863, and total crypto market capitalization slipped 2.3% to $2.24 trillion.
The Fed held rates at 3.50%, 3.75% on Wednesday, its fifth consecutive hold, with Chair Kevin Warsh emphasizing that there is 'no soft inflation target' and the Committee will not waver.
June PCE inflation came in at 3.7%, down from 4.1% but far above the 2% target. With growth solid and inflation sticky, the backdrop rewards equities on earnings strength and leaves crypto without its catalyst.