Crypto markets fell today as two major events hit at the same time. The Federal Reserve kept interest rates unchanged in what marks the final decision of Jerome Powell as Fed Chair, while President Trump rejected Iran’s request to reopen the Strait of Hormuz and ensure that military demonstrations are planned.
Bitcoin fell to $75,164, down 1.29% on the day and 4.83% last week. Ethereum fell to $2,241, down 2.09% in 24 hours. XRP fell to $1.35, down 2.03% on the day. The main crypto market sits at $2.53 trillion with the Fear and Greed Index reading 39, in the fear sector.
The Fed’s Alarming Language Shift
The interest-only ruling was highly anticipated. What was not expected was a change in how the Fed defined inflation. For months, lawmakers have indicated that inflation is “high” in official terms. Wednesday’s ruling removed the merits.
The Fed now says inflation has “raised.” That single word change carries a terrible weight. It shows that the fall in prices, which the markets have priced in at the end of this year, may be further away than previously thought. Long-term high prices are not the natural thing that crypto or equities want to enter in the second half of 2026.
Iran’s Growth Increases Pressure
Adding to the great uncertainty, the President Trump refused Iran’s offer to reopen the Strait of Hormuz confirms plans for what Axios described as a “short and powerful” strike against Iran. Trump has said he will continue the naval blockade until Iran accepts the nuclear deal and has said Iran’s oil facilities and pipelines are under pressure from the ongoing sanctions.
US oil prices rose $107 a barrel on the news. The rise in energy prices is directly related to the inflation rate, which helps explain why the Fed’s language was so tight at this point in time. Rising oil prices, rising inflation, and falling prices are a combination that is pushing investors away from speculative assets.
Trust CoinPedia:
CoinPedia has been providing accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our team of expert researchers and journalists, following strict Editorial guidelines based on EEAT (Effectiveness, Expertise, Validity, Trustworthiness). Each article is checked against the standard to ensure accuracy, transparency, and reliability. Our review policy ensures an unbiased review when we develop exchanges, platforms, or tools. We strive to provide timely updates on everything crypto & blockchain, from startups to industry executives.
Investment Disclaimer:
All opinions and information shared represent the author’s opinion on market conditions. Please do your own research before making any financial decisions. Neither the author nor the publisher is responsible for your financial decisions.
Offers and Promotions:
Sponsored content and affiliate links can be viewed on our website. Advertisements are clearly identifiable, and our content is not independent of our advertisers.
