FOMC Rate Hike Expected to Hit Crypto Markets Hard

The Federal Reserve's FOMC meeting today is expected to result in a 25-basis-point rate hike, which has already been priced into markets. Bitcoin is trading below $75,000 and crypto markets are under pressure ahead of the announcement.

Markets have shifted from expecting two hikes to pricing in at least three by June 2027, according to traders. Former Fed Vice Chair Richard Clarida warned that another hike could follow, stating 'If we get a hike next week, certainly we'll get additional ones. This is certainly not one and done.'

The CLARITY Act's failure to advance in the Senate has added pressure to the crypto market, with prediction markets putting its 2026 passage odds at around 12%. The total crypto market fell more than 3% following the setback, while Bitcoin dropped below $75,000.