Cryptocurrencies are facing a minor decline as markets react to potential interest rate hikes from the Federal Reserve, while also showing relief following the recent signing of the U.S.-Iran peace agreement intended to address the Middle East conflict. BTC fluctuated within a range of $66,354 to $63,637 over the last 24 hours. Overall, the crypto market capitalisation saw a decrease of slightly more than one percent during that period. The Federal Reserve on Wednesday made a unanimous choice to keep interest rates steady within the range of 3.50 to 3.75 percent. The FOMC acknowledged that economic activity was advancing at a strong pace, despite the increased uncertainty arising from the conflict in the Middle East. The Committee recognised that inflation continued to be elevated relative to its 2 percent target and reiterated its commitment to attaining price stability. In the Summary of Economic Projections released simultaneously, the Fed has adjusted the GDP growth projection for 2026 down to 2.2 percent from the previously stated 2.4 percent made in March. The unemployment rate projection has been revised to 4.3 percent, down from the previously expected 4.4 percent stated in March. The Fed anticipates that PCE inflation will rise to 3.6 percent in 2026, an increase from the previously projected level of 2.7 percent made in March. The core PCE is expected to rise to 3.3 percent, an increase from the earlier forecast of 2.7 percent made during the FOMC in March.
Hints of rising rates have, however, dampened sentiment in the crypto market. The Federal Funds rate is expected to rise to 3.8 percent in 2026, an increase from the earlier anticipated level of 3.4 percent as detailed in the projections from March 2026. The projection of the federal funds rate for 2027 has been revised to 3.6 percent, an increase from the 3.1 percent anticipated in March. Similarly, the projection for 2028 has been updated to 3.4 percent, rising from the 3.1 percent expected in March. The long-term forecast remains unchanged at 3.1 percent. According to the CME FedWatch tool, which tracks the expectations of interest rate traders, the likelihood of the Federal Funds rate remaining at the current level of 3.50-3.75 percent by the end of 2026 is currently only 16 percent. It was 20 percent the day before and 42 percent a week before. As the markets adjusted to anticipated Fed rate hikes, the mood in the crypto sector remained largely unchanged despite the recent peace agreement intended to resolve the conflict in the Middle East. In line with the current market sentiment, CoinMarketCap’s Fear and Greed Index, which measures the emotional atmosphere in the cryptocurrency sector, remains steady at 22, reflecting a state of fear.
The total value of the crypto market has dropped by 1 percent in the past 24 hours, currently at $2.21 trillion. Among the top 100 cryptocurrencies, only 11 are seeing overnight gains of more than one percent, while almost 60 are dealing with overnight losses that exceed one percent. Bitcoin, the largest cryptocurrency, is currently valued at $63,972, reflecting a decrease of 1.3 percent. The current price is roughly 49 percent lower than the peak of $126,198.07, reached on October 7, 2025. The original cryptocurrency has seen a rise of 1.8 percent over the past week; however, it still faces losses approaching 27 percent for the year so far. On Wednesday, Bitcoin Spot ETF products in the U.S. saw net outflows of $82 million, in contrast to the net inflows of $10 million noted on Tuesday. ARK 21Shares Bitcoin ETF saw a decrease in assets totalling $44 million, while iShares Bitcoin Trust also faced a decline with $31 million in outflows. Bitcoin is currently ranked 15th in the global asset hierarchy based on market capitalisation data. Bitcoin is the only cryptocurrency in the top 100 of the mentioned global ranking.
Ethereum declined by 1.7 percent overnight, now trading at $1,740.93. The leading alternate coin is currently trading at a level that is 65 percent lower than its all-time high of $4,953.73, which was achieved on August 25, 2025. The trading over the past 24 hours varied between $1,793.03 and $1,721.31. On Wednesday, Ethereum Spot ETF products in the U.S. saw net outflows of $29 million, in contrast to the net inflows of $10 million noted on Tuesday. The 4th ranked BNB saw a decrease of 2 percent overnight, resulting in a price adjustment to $589.04. BNB is currently situated 57 percent below its peak of $1,370.55, achieved on October 13, 2025. The sixth-ranked cryptocurrency focused on payments saw a decrease of 1.9 percent overnight and is currently trading at $1.17, which is about 69 percent lower than its all-time high of $3.84 achieved on January 4, 2018. The price of the 7th ranked cryptocurrency decreased by 1.3 percent overnight, now standing at $71.44. SOL’s current price is roughly 76 percent lower than its peak of $294.33, reached on January 19, 2025.
TRON, ranked 8th overall, experienced a modest increase of 0.25 percent overnight and is presently trading at $0.3206. The trading price is currently 27 percent lower than the cryptocurrency’s peak of $0.4407, reached on December 4, 2024. 9th ranked Hyperliquid dropped 1.7 percent overnight, trading at $71.43, approximately 7 percent below the all-time high of $76.85 reached on June 16. Memecoin Dogecoin, which holds the 10th position overall, saw a decrease of 1.3 percent overnight and is now trading at $0.0847. DOGE is currently situated 89 percent below its highest price of $0.7376, attained on May 8, 2021. Humanity, ranked 65th, led the overnight gains among the top 100 cryptocurrencies, experiencing an increase exceeding 20 percent. Audiera ranked 84th, saw a drop of more than 18 percent, contributing to the overnight losses among the top 100 cryptocurrencies.