Bitcoin and crypto markets tumble after Fed's hawkish rate decision

Major cryptocurrencies fell on Wednesday after the Federal Reserve held interest rates steady. Bitcoin and other large tokens declined as markets reacted to the central bank’s hawkish stance. Gold and silver also weakened during the session. The Federal Open Market Committee voted unanimously to keep its benchmark rate between 3.5% and 3.75%. Policymakers lifted their inflation forecasts and indicated a slower path to rate cuts. This was Kevin Warsh’s first meeting as chair, where the Fed released projections signalling tighter policy for longer.

Bitcoin dropped about 2.2% to trade near $64,150. Ether fell roughly 3.6%, while XRP and Solana each lost around 3%. The GMCI 30 index of large-cap tokens slipped 2.6%, deepening its year-to-date loss to nearly 36%.

Traditional safe-haven assets also struggled. Gold fell 2.2%, and silver declined 4%. Meanwhile, data showed record-long holding patterns for bitcoin. A historic 79% of its circulating supply was held by long-term investors. Only 218,421 BTC had been reactivated by June 6, 2026, the lowest figure for that date since 2012. Crypto prices moved lower as the Fed’s decision weighed on risk assets. The central bank’s updated forecasts pointed to prolonged higher rates. Long-term bitcoin holders continued to show strong conviction, with most supply remaining dormant.