Hawkish Fed Crushes Bitcoin Amid Iran Deal Optimism

Bitcoin's price stalled near $64,200 on Thursday, down around 1.3% to 2% over the prior 24 hours, as a hawkish Federal Reserve signal weighed on the cryptocurrency.

The Fed held its benchmark rate steady at 3.50%, 3.75%, but the accompanying dot plot turned sharply more hawkish, with nine of eighteen officials now projecting at least one rate increase by the end of 2026 and the inflation forecast revised higher.

Bitcoin's price weakness was a stark contrast to the equity market's reaction to the signed US-Iran peace memorandum and the resulting slide in oil, which bid stocks higher across the board.

However, beneath the price weakness, the on-chain picture is sending a different message, with long-term holders accumulating aggressively and whale wallets rebuilding their positions.