Bitcoin slipped below $63,000 on Thursday as investors reacted to the Federal Reserve’s hawkish outlook, with expectations for higher interest rates outweighing optimism from the recent US-Iran peace agreement.
The world’s largest cryptocurrency fell nearly 2%, extending losses across the broader crypto market. Ethereum, Solana, XRP, and several other major digital assets also traded lower as investors reduced exposure to riskier assets.
While the announcement of a preliminary US-Iran peace deal initially improved sentiment across global markets, cryptocurrencies failed to benefit. Instead, traders focused on the Fed’s message that inflation remains a priority, reinforcing expectations that interest rates could stay higher for longer.
Higher interest rates typically reduce demand for speculative assets by tightening financial conditions and making safer investments more attractive. As a result, crypto continued to underperform even as US stock futures moved higher following the diplomatic breakthrough.
Analysts now expect Bitcoin to remain largely range-bound until a stronger catalyst emerges, such as further easing of geopolitical tensions or new US crypto legislation.
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