Bitcoin Hits Lows Amid Fed Rate Stance
Bitcoin dropped to lows of $74,958 before stabilizing above $75,000, coinciding with tighter liquidity in traditional equity markets. The decline hit risk assets hard as short-term volatility surged.
On Wednesday, Bitcoin's price briefly slipped below $75,000 as the Federal Reserve opted to hold interest rates unchanged. This decision dimmed hopes for near-term rate cuts and triggered a broad-based sell-off in speculative assets.
The cryptocurrency fell to roughly the $75,000 level, trimming earlier gains after the US central bank signaled a more cautious approach to monetary easing. Market data over the past 24 hours showed a modest 1.4% decline, with Bitcoin hovering around $75,156.
Elevated yields combined with geopolitical uncertainty have dampened risk appetite, keeping BTC capped below $80,000. The move weighed heavily on crypto-linked equities, exposing vulnerabilities in the sector.
Crypto Stocks Face Sharp Pressure
The Fed's in-line-but-hawkish-leaning decision spilled over into crypto-related stocks, already strained by disappointing revenue trends. Robinhood (HOOD) led the slide, plunging 14% after reporting a nearly 47% year-over-year drop in crypto-related revenues for the first quarter.
This steep contraction signals weaker trading volumes and fading retail enthusiasm for digital assets. Pessimism spread across the sector, with US crypto exchange Coinbase (COIN) falling 7%. Bullish (BLSH), the institutional platform owned by CoinDesk's parent company, dropped 7%, while Gemini (GEMI) declined 5%.
Bitcoin miners also sold off, as Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) slipped 4%-6%. Softer Bitcoin prices and elevated energy costs squeezed margins. MicroStrategy (MSTR), the largest corporate Bitcoin holder, retreated 4%.
Key Crypto Stocks Declines
- Robinhood (HOOD): -14% on 47% crypto revenue drop
- Coinbase (COIN): -7%
- Bullish (BLSH): -7%
- Gemini (GEMI): -5%
- Riot Platforms (RIOT): -4% to -6%
- Marathon Digital (MARA): -4% to -6%
- MicroStrategy (MSTR): -4%
Oil Surge Fuels Broader Risk-Off Mood
Sentiment deteriorated beyond crypto, with US equities broadly declining and energy prices spiking. The Dow Jones Industrial Average shed more than 300 points, pressured in part by an oil surge following President Trump’s comments on Iran.
In a Wednesday interview with Axios, Trump stated he would maintain a US blockade at the Strait of Hormuz until a nuclear-related deal with Iran is reached. This heightened concerns over supply disruptions in one of the world’s most critical oil chokepoints.
Brent crude climbed more than 4% above $111 per barrel, while US West Texas Intermediate (WTI) crude topped $106 per barrel. The rise fueled inflation-sensitive market jitters and reinforced the risk-off tone weighing on Bitcoin and crypto stocks.
I would maintain a US blockade at the Strait of Hormuz until a nuclear-related deal with Iran is reached.
