Bitcoin Slips Below $64K as Fed Chair Warns of No Soft Inflation Target

The Federal Reserve's decision to hold interest rates at 3.50%-3.75% had a muted impact on cryptocurrency markets, with Bitcoin slipping below $64K after Fed Chair Kevin Warsh emphasized that there is 'no soft inflation target.'

Bitcoin initially climbed above $64,400 after the Fed held its benchmark rate, but gave back the move when Warsh's hawkish comments dragged risk assets lower. BTC was trading just under $64,000 at press time, up about 1% over 24 hours.

The reaction shows crypto traders are taking cues from Warsh's inflation rhetoric rather than the rate decision itself, which markets had mostly priced in. The hold came with an unusual twist: three FOMC members dissented in favor of a 25 basis point hike, the first time in years markets went into a Fed meeting split on whether the central bank would raise rates.

The macro backdrop did crypto no favors going into the announcement, with oil jumping after Trump said the U.S. would respond forcefully to attacks on American personnel in the Middle East, the 10-year Treasury yield rising to 4.62%, and the Dow falling almost 400 points before paring losses after the hold.