Trump’s Peace News Sends Stocks Soaring, But Crypto Hits a Fed Snag: Market Decline
The U.S. Federal Reserve’s (Fed) hawkish stance due to inflation concerns has led to sharp declines in the cryptocurrency market, despite Donald Trump’s upcoming peace deal with Iran boosting stocks.
The cryptocurrency market faced broad selling pressure on Thursday, giving back some of its weekly gains. Although U.S. President Donald Trump’s signing of a deal ending the war with Iran and reopening the Strait of Hormuz to traffic created optimism in traditional markets, digital assets preferred to focus on the Fed’s signals regarding monetary policy. This situation reduced the appetite for risky assets, causing prices to gain downward momentum.
Bitcoin (BTC) dropped 3% in the last 24 hours, falling to levels around $63,900. Similarly, Ethereum (ETH) fell 3.4% to $1,733, while Solana (SOL) declined 3.6% to $71. Although the Fed kept interest rates steady in the 3.5% to 3.75% range, it messaged that future rate cuts could slow down and that inflation remains a threat. This hawkish stance displayed during the first meeting under the leadership of new Chair Kevin Warsh weakened market liquidity expectations.
Fed Decision Triggers Sell-off in Cryptocurrencies
This negative sentiment in the market parallels the downward charts in the shared data. The fact that prices entered a sharp downward trend after a certain peak proves that investors are moving away from risky assets. Analysts predict that the sideways movement between $60,000 and $70,000 for the Bitcoin price could continue for a while longer.
While stock markets rose following the deal signed by Trump, the inability of cryptocurrencies to accompany this rally was noted as a striking divergence. Open interest data and market sentiment show that investors are currently weighing the Fed’s tight monetary policy steps more heavily than geopolitical good news.
Uncertainty and Consolidation Process in Markets
Experts state that for cryptocurrencies to exit this stagnation, regulatory steps such as the CLARITY Act need to be taken or institutional interest must be revitalized. The current picture is considered a consolidation—an effort for prices to stabilize within a certain range under tight monetary policy—rather than a surrender.
Capital that has shifted particularly toward AI stocks is expected to return to crypto assets as regulations become clearer. However, in the short term, the fact that the Fed is keeping even the possibility of a rate hike on the table indicates that the pressure on the cryptocurrency market may continue for some time.