Fed Holds Rates at 3.50%–3.75%, Signals 2026 Hikes as Bitcoin Drops to $64,100

The Federal Reserve held its benchmark interest rate at 3.50%–3.75% on Wednesday, June 17, 2026, in the first policy meeting chaired by Kevin Warsh, but signaled a hawkish outlook by projecting possible rate hikes in 2026. Major cryptocurrencies declined following the announcement, with Bitcoin dropping from an intraday high near $66,315 to about $64,100. The hawkish tone stemmed from updated Fed projections showing nine of 18 committee members penciling in a 2026 rate increase and pushing any rate cuts into 2027 and 2028, amid concerns over inflation rising toward an annualized 3.6% by year-end due to higher energy prices.

Fed Holds Rate at 3.50%–3.75%, Projects 2026 Hike

The Federal Open Market Committee voted 12–0 to hold the benchmark federal funds rate at 3.50%–3.75%. The meeting was the first chaired by Kevin Warsh, who took over after Jerome Powell's term ended in May. Nine of the committee's 18 participants penciled in a 2026 rate hike, and the so-called dot plot erased an earlier signal of a cut this year, pushing any reductions into 2027 and 2028. Committee members projected inflation rising toward an annualized 3.6% by year-end, citing higher energy prices. During the press conference, Fed Chair Warsh announced that the Fed has dropped forward guidance.

Bitcoin Falls to $64,100 as Ether, XRP, Solana Drop Roughly 3%

Bitcoin moved from an intraday high near $66,315 down to about $64,100 following the Fed announcement. Ether fell about 3.21% to around $1,734, XRP dropped roughly 3.47% to about $1.17, and Solana slid about 3.32% to near $71.20. The synchronised move underscored how closely the major tokens still track shifts in the macro outlook.

Over $150 Million in Short Positions Liquidated

More than $150 million in short positions were liquidated as prices briefly spiked above $66,000 before reversing. Market data pointed to dense leverage clusters between $64,500 and $65,000 that amplified the drop.

FAQ

What did the Federal Reserve decide on June 17, 2026?

The Federal Reserve held its benchmark federal funds rate at 3.50%–3.75% in a 12–0 vote. Nine of 18 committee members projected a rate increase in 2026, and the Fed pushed any rate cuts into 2027 and 2028. Committee members projected inflation rising toward an annualized 3.6% by year-end, citing higher energy prices.

How did cryptocurrencies react to the Fed's rate decision?

Bitcoin dropped from an intraday high near $66,315 to about $64,100. Ether fell about 3.21% to around $1,734, XRP dropped roughly 3.47% to about $1.17, and Solana slid about 3.32% to near $71.20. More than $150 million in short positions were liquidated during the session.