Crypto Markets Reel from Fed's Higher-for-Longer Stance

Crypto markets took a hit after the Federal Reserve's latest policy decision, with Chair Jerome Powell's comments sending a clear signal that inflation risks persist.

The Fed's decision to keep interest rates steady was largely expected, but it was Powell's press conference that sparked the market reaction. He emphasized that inflation remains elevated and warned that recent developments, particularly rising energy prices linked to Middle East tensions, could keep price pressures higher in the near term.

According to TradingView's heatmap, large-cap tokens led the decline, with Bitcoin falling over 5%, Ethereum dropping more than 6%, and XRP declining by around 5.3%. Other altcoins also suffered losses, except for a handful of assets that showed resilience.