The Federal Reserve's decision to maintain interest rates and lean towards future hikes has had a significant impact on the cryptocurrency market. On Wednesday, Bitcoin and Ether ETFs suffered from outflows, with Bitcoin funds losing $82 million and Ether funds shedding $29 million, according to SoSoValue data.
The trigger for this decline was the Federal Reserve's projections, which now see the policy rate ending 2026 at 3.8%, up from 3.4% in March. This shift indicates that the market's hopes for rate cuts have died down.
Markets are putting the odds of an increase as soon as October near 60%. The price tape has stalled, with total crypto market value holding flat near $2.26 trillion since Tuesday's close. Bitcoin has eased to about $63,800, mid-range of the climb it built over the past 11 days.
The macro backdrop has flipped, replacing rate cut bets with a Fed leaning towards hikes. The next tests are October hike odds and whether the ETF bid returns.