We break down how the Fed’s first meeting under Kevin Warsh played out and how bitcoin and Ethereum reacted to the central bank’s decision.
The first FOMC meeting under new Chair Kevin Warsh ended with rates held at 3.5%-3.75%. But the tone was much more hawkish than expected. Warsh mentioned “price stability” more than ten times, and any hints of easing were stripped from the statement.
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Nine of the 18 committee members now expect at least one rate hike by year-end. Markets took it as a tightening signal. Two-year Treasury yields jumped 14.4 basis points, and stock indexes sold off.
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What Happened to BTC and Bitcoin ETF Flows After the Fed Meeting
Bitcoin (BTC) broke below the $65,600-$67,200 range and dropped under $64K. At press time, the cryptocurrency has recovered slightly and trades at roughly $64,300, down just under 1% on the day.
According to Coinglass, bitcoin long liquidations hit $113.7M over the past 24 hours, while shorts came in at $43.3M.
U.S. spot bitcoin (BTC) ETFs saw $82.2M in outflows, reversing the prior day’s $10.2M inflow. Ethereum (ETH) ETFs lost $29M. The outflows were broad-based: BlackRock’s IBIT lost $31M, and ARKB dropped $44M.
How the Fed Dashed Crypto Market Hopes for Easing
The macro backdrop for crypto assets has deteriorated sharply. US inflation is running at 4.2% annually, well above the Fed’s 2% target. Wage growth, resilient consumer spending, and record AI investment are keeping prices elevated. A key signal was the Fed’s decision to drop forward guidance—its communication tool for signaling future policy intentions.
Positive geopolitical news—a US-Iran deal reopening the Strait of Hormuz, with signing expected tomorrow, June 19—couldn’t offset the Fed-induced pressure.
The next FOMC meeting is scheduled for July 28-29. CME pricing shows a zero percent chance of a cut, a 32.1% chance of a hike, and a 67.9% chance rates hold steady.
Learn more: Who Is Kevin Warsh? Trump’s New Pick Could Replace Jerome Powell As Fed Chair
