BTC remains down sharply as Fed stays on hold

The Federal Reserve held its benchmark fed funds rate range steady at 3.50%-3.75% on Wednesday, as expected.

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Down nearly 4% ahead of the anticipated decision following a surge in oil prices and poor inflation data earlier on Wednesday, bitcoin remained sharply lower at $71,600 in the moments following the news.

“The implications of developments in the Middle East for the U.S. economy are uncertain,” said the central bank in its accompanying statement.

The vote to hold policy steady was 11-1, with Stephen Miran voting to trim rates by 25 basis points.

The Fed also updated its economic projections. Of particular note is a sizable rise in inflation expectations — now seen at 2.7% for 2026 versus 2.4% previously. Inflation, however, is expected to drop to 2.2% in 2027 against 2.1% projected earlier.

The so-called “dot plot” continues to show expectations for one 25-basis-point rate cut in 2026 and one more in 2027.

The U.S. central bank must balance what appears to be a slowing employment market with inflation that remains well above its 2% target. Adding to that is the March attack against Iran, which has sent the price of oil to nearly $100 per barrel versus less than $60 earlier this year.

Investors will now turn their attention to Federal Reserve Chair Jerome Powell’s post-meeting press conference at 2:30 pm ET for further insight into the central bank’s outlook.