Bitcoin (BTC) Price: BTC Drops Below $70K as Fed Dashes Rate Cut Hopes

TLDR

• Bitcoin dropped below $70,000 after the Fed held interest rates steady and signaled only one rate cut in 2026.
• The Fed raised its 2026 inflation forecast to 2.7%, citing rising oil prices driven by conflict in the Middle East.
• Crude oil surged past $110 per barrel after Iran attacked energy facilities across the region.
• Long-term Bitcoin holders, known as “OGs,” sold over 1,650 BTC worth around $117 million.
• Markets across crypto, stocks, and gold all fell, with the Nasdaq closing down 1.5% and Ether dropping over 6%.

Bitcoin (BTC) fell sharply this week, sliding below $70,000 after the Federal Reserve held interest rates steady and signaled it would cut rates more slowly than markets had hoped.

The Fed kept its benchmark rate in the 3.5%–3.75% range. But the bigger concern for traders was the tone of Fed Chair Jerome Powell’s press conference.

Powell pointed to rising oil prices as a new inflation risk. “The oil shock for sure shows up,” he said, referring to its effect on the central bank’s projections.

The Fed raised its 2026 inflation forecast to 2.7%, up from its earlier estimate of 2.4%. That increase spooked investors who had expected inflation to keep cooling.

The central bank’s “dot plot,” which tracks where policymakers expect interest rates to go, now shows a median of just one rate cut in 2026. A month ago, markets were pricing in two to three cuts.

Trading on Polymarket and CME Fed funds futures moved quickly. The probability of just one rate cut this year jumped to around 80%, up from a 38% chance just a month prior.

Oil Prices Add Pressure

Oil prices were already rising before the Fed meeting. Crude surged above $110 per barrel after Iran attacked energy facilities across the Middle East, following a strike on its South Pars gas field.

Higher oil prices pushed bond yields up and strengthened the U.S. dollar, which tends to weigh on risk assets like Bitcoin.

The Bank of Japan also held rates steady on Thursday and flagged the Middle East conflict as a risk to Japan’s inflation path.

Bitcoin had been trading above $74,000 earlier in the week, briefly touching near $76,000. By early Thursday, it had fallen to around $70,817, a drop of roughly 4.2% in 24 hours.

Ether fell over 6%, while XRP, Solana, and Dogecoin all posted losses in the 3%–5% range. The CoinDesk 20 Index dropped 3%.

Bitcoin OGs Sell Over $117 Million in BTC

Blockchain data tracked by Lookonchain showed that at least two long-term Bitcoin holders sold into the decline.

One early holder who had previously sold an 11,000 BTC stack offloaded another 650 BTC. A second OG with a 5,000 BTC position sold all 1,000 BTC of a recent holding.

Together, the two sold over 1,650 BTC worth more than $117 million.

Digital asset stocks also fell sharply. Strategy (MSTR) and Bitmine (BMNR) dropped 5%–6%. Galaxy (GLXY) fell nearly 7%, and Gemini (GEMI) tumbled 15%, hitting its lowest level since going public.

Gold also extended losses, falling 3.1% to below $4,850 per ounce — its weakest price in over a month.

Powell dismissed comparisons to 1970s stagflation, saying unemployment remains near normal levels and inflation is only slightly above target. Markets are now pricing in a tighter monetary environment for the rest of 2026.

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