Bitcoin, which recently recovered to $66,000, fell back below $65,000. That is because the Federal Open Market Committee (FOMC) signaled a stronger-than-expected chance of a rate hike.
According to CoinMarketCap, a virtual asset market tracker, on the 18th, major virtual assets including bitcoin are declining. Bitcoin is transaction at $64,396, down 1.84% from 24 hours earlier.
Altcoins also fell across the board. Ethereum, the No. 2 by market cap, is down 2.51% to $1,746, Ripple is down 2.54% to $1.18, and Solana is down 2.21% to $71.98.
On the 17th, at the first FOMC chaired by new U.S. Federal Reserve (Fed) Chair Kevin Warsh, the Fed kept the benchmark rate unchanged at 3.50%–3.75% annually. The decision itself matched market expectations, but investor sentiment froze as the future rate path was presented as more hawkish than expected.
The market interprets the confirmation of the Fed's hawkish stance as damping risk appetite for assets such as bitcoin. The monetary policy statement deleted language that had hinted at possible rate cuts, and the year-end benchmark rate forecast (median) presented by Fed members rose to 3.8%, higher than the March forecast (3.4%).