Crypto Market Plunges After Fed Raises Inflation Forecast

The Federal Reserve's decision to keep interest rates steady has sent shockwaves through the crypto market, with Bitcoin experiencing a significant decline in value.

On Thursday, policymakers announced that they would maintain their current rate, but also raised their 2026 PCE inflation forecast to 2.7%. This move was seen as a hawkish surprise, with seven out of 19 FOMC members now projecting zero interest rate cuts this year, up from six in December.

The impact on the crypto market has been substantial, with nearly all top digital assets experiencing losses over the past 24 hours. Bitcoin, Ethereum, and Solana were among the biggest losers, with their prices falling by 1.3%, 2%, and 2% respectively. The total crypto market capitalization also declined, dropping by 1.5% to $2.48 trillion.