Bitcoin Tumbles to $63K Amid Fed's Hawkish Stance and Rising Rate Hike Expectations

Bitcoin (BTC) price fell to around $63,964 on Thursday after the Federal Reserve's decision to maintain current interest rates while hinting at potential tightening in late 2026.

The move saw traders increase their expectations for at least one 25 basis point rate hike before year-end, which typically diminishes investor enthusiasm for high-risk assets like BTC.

While a framework peace agreement between the US and Iran boosted overall risk appetite, cryptocurrency assets trailed behind AI and semiconductor equities.

According to Kraken's Chief Economist Thomas Perfumo, historical data shows that purchases below the 200-week simple moving average have frequently generated substantial gains in previous market cycles. The current BTC price hovers marginally above this threshold at around $62,358.