Bitcoin slips below $71,000 as traders scale back expectations for Fed rate cuts.

Bitcoin dropped sharply on Thursday, falling below $71,000 as investors reacted to a more hawkish Federal Reserve outlook and a spike in oil prices fueled by rising Middle East tensions.

The world’s largest cryptocurrency slid 4.2% to $70,817.4 by early trading, retreating from levels above $74,000 in the previous session and nearly $76,000 earlier in the week.

Fed outlook weighs on markets

Pressure on digital assets intensified after the Federal Reserve kept interest rates unchanged but flagged ongoing inflation risks, particularly from rising energy costs. Officials cautioned that higher oil prices could slow the disinflation process and push back expected rate cuts. The Fed also raised its 2026 inflation forecast to 2.7% from 2.4%, signaling concern over persistent price pressures.

Oil prices surged past $110 per barrel on Wednesday and continued climbing in Asian trading Thursday after Iran launched attacks on energy facilities across the Middle East following a strike on its South Pars gas field.

As cryptocurrencies increasingly move in tandem with macroeconomic trends, they faced headwinds from rising bond yields and a stronger U.S. dollar driven by higher oil prices. U.S. stock markets closed lower बुधवार, while Asian equities also declined early Thursday.

Meanwhile, the Bank of Japan held rates steady and warned that developments in the Middle East conflict and oil prices could influence Japan’s inflation outlook.

Kraken delays IPO plans

Crypto exchange Kraken has reportedly paused its plans for a multibillion-dollar IPO due to unfavorable market conditions, according to CoinDesk. The firm, which had confidentially filed a draft S-1 with the U.S. SEC in November, is now expected to delay its listing until market sentiment improves.

The decision reflects a broader downturn in crypto markets since late 2025, with weaker prices and trading volumes dampening valuations and investor demand. Kraken was last valued at $20 billion after raising $800 million.

Altcoins extend losses

Most altcoins also declined on Thursday. Ethereum, the second-largest cryptocurrency, fell 6% to $2,193.41, while XRP dropped 3.5% to $1.47. Solana and Polygon each lost about 4%, and Cardano slid 6%. Among meme coins, Dogecoin fell 5%.

Sources: Ayushman Ojha