Federal Reserve's Hawkish Stance Sparks Cryptocurrency Sell-Off

The Federal Reserve's announcement has sent shockwaves through financial markets, catching investors off guard with a hawkish approach that contradicts previous expectations.

While it was widely anticipated that the central bank would keep interest rates unchanged within the 3.5% to 3.75% range, Chair Powell's acknowledgment of higher oil prices influencing inflation projections caught traders by surprise.

The revised inflation forecast from 2.4% to 2.7% for 2026 has raised concerns about a longer period of restrictive policy, leading to a sell-off in cryptocurrencies such as Bitcoin and Ethereum.