Bitcoin and Ethereum prices drop due to Federal Reserve’s hawkish stance overshadowing relief from Iran deal
June 18, 2026
stance by the Fed tightens borrowing conditions and diminishes interest in high-volatility assets like cryptocurrencies. Experts anticipate that Bitcoin will remain within the $60,000 to $70,000 range unless there are significant developments, such as further de-escalation between the U.S. and Iran or advancements in U.S. cryptocurrency market regulation.
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Bitcoin and Ethereum, two of the most significant cryptocurrencies in the market, experienced a decline following the Federal Reserve’s decision to maintain interest rates and emphasize inflation as a more critical concern than economic growth. Bitcoin saw a 3% drop to approximately $63,900, while Ethereum slipped by 3.4% to $1,733 as traders adjusted to a less supportive policy environment. Presently, Bitcoin has recovered slightly to $64,300, with Ethereum hovering around $1,744.
The downward trend was evident across various major tokens, with XRP declining by 3.9% to $1.17, Solana losing 3.6% to $71, and Hyperliquid’s HYPE plummeting by 7.2% to $69 after its earlier market lead. Tron stood out among major assets by recording a 0.9% increase.
Despite stocks showing favorable reactions due to a significant geopolitical development where President Donald Trump signed an interim agreement to terminate the war with Iran and resume the operation of the Strait of Hormuz, cryptocurrencies did not follow suit. Instead, the attention of traders was drawn to the Federal Reserve. The central bank opted to maintain rates between 3.5% to 3.75%, while its updated forecasts indicated heightened inflation levels and reduced prospects for future rate reductions. Certain officials even hinted at the possibility of rate increases.
The impact of the Fed’s approach is paramount as cryptocurrency rallies often hinge on accessible liquidity. A more hawkish stance by the Federal Reserve equates to stricter borrowing conditions, thereby diminishing the appeal of high-volatility assets. Analysts anticipate that Bitcoin will trade within a range of $60,000 to $70,000 unless significant catalysts emerge, such as further steps toward de-escalation in U.S.-Iran relations or advancements in U.S. cryptocurrency market regulatory developments.
