Bitcoin and Ethereum Slide Up to 5.3% After Fed Rate Decision

In this context, Bitcoin (BTC) is down 3.9% over the past 24 hours to $71,137, according to Binance, while Ethereum (ETH) is shedding 5.3%.

Ethereum is down slightly but could recover fast and strong.

Quick overview

  • Bitcoin has fallen 3.9% to $71,137, while Ethereum has dropped 5.3% to $2,199 amid global market caution.
  • The U.S. Federal Reserve's decision to keep interest rates unchanged and projections of higher inflation have contributed to the decline.
  • Despite the short-term losses, institutional interest in cryptocurrencies remains strong, with significant inflows into Bitcoin and Ethereum ETFs.
  • A recent regulatory shift indicates that most cryptocurrencies may not be classified as securities, potentially fostering broader adoption.

Bitcoin Falls Below $72,000 While Ethereum Drops Under $2,200.

The cryptocurrency market is posting sharp losses this Wednesday amid global caution after the U.S. Federal Reserve decided to keep interest rates unchanged and projected higher inflation in the coming months, accelerating Wall Street’s decline.

In this context, Bitcoin (BTC) is down 3.9% over the past 24 hours to $71,137, according to Binance, while Ethereum (ETH) is shedding 5.3% to trade at $2,199. Altcoins are mostly lower, with losses of up to 5%, led by Solana (-5%) and Dogecoin (-5%).

As widely expected, the Federal Reserve held interest rates steady in the 3.5%–3.75% range. The surprise came from updated economic projections, particularly higher expected inflation for 2026, driven by volatility in global oil prices linked to the conflict in the Middle East.

BTC/USD

Bitcoin is showing a modest pullback on the day, reflecting a more defensive market stance. Even so, the asset continues to consolidate within a key technical range between $70,000 and $76,000. Immediate resistance aligns with the recent high near $76,000; a daily close above this level could open the door to a move toward $78,000.

Institutional flows remain strong

Despite the short-term correction, institutional interest remains firm. Spot Bitcoin ETFs recorded net inflows of $199.4 million in the latest session, marking seven consecutive days of gains and totaling nearly $1.2 billion over that period.

Similarly, Ethereum ETFs added $138.3 million, while products tied to Solana and XRP also saw inflows, albeit on a smaller scale.

According to analysts, these flows reflect structural demand driven by long-term investors. “These are not tactical trades, but strategic allocations by players with extended investment horizons,” market participants note.

This support has helped Bitcoin maintain a relatively stable range, even after a roughly 15% rally and amid a global backdrop marked by geopolitical tensions.

Regulatory shift and new opportunities

On the regulatory front, the United States delivered a notable signal: the SEC and CFTC issued new guidance stating that most cryptocurrencies should not be classified as securities.

This marks a shift from the regulators’ previous stance and could reduce uncertainty that had been holding back some institutional investors. For the market, the new framework opens the door to broader adoption and the development of new financial instruments, including an expansion of crypto ETFs.

Against this backdrop, cryptocurrencies are experiencing a pause in prices, but underlying fundamentals continue to show growing support from institutional capital.

ABOUT THE AUTHOR See More
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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