Key Highlights
- BTC declined 4.2% to approximately $70,800 following the Federal Reserve’s rate decision and inflation warning
- Crude oil prices jumped above $110 per barrel after Iranian strikes on Middle Eastern energy infrastructure
- Federal Reserve increased its 2026 inflation projection to 2.7%, diminishing expectations for monetary easing
- Equity futures dropped, pushing the Dow and S&P 500 to 2026 lows
- Cryptocurrency exchange Kraken suspended its public offering plans citing challenging market environment
On Thursday, Bitcoin slipped beneath the $71,000 threshold, declining 4.2% to reach $70,817. This downturn followed the Federal Reserve’s decision to maintain current interest rates while expressing heightened inflation worries.
Bitcoin had been hovering above $74,000 during the previous session and reached nearly $76,000 earlier this week.
The Federal Reserve elevated its inflation projection for 2026 to 2.7%, marking an increase from the previous 2.4% estimate. Central bank officials indicated that escalating energy costs may postpone anticipated rate reductions.
Oil prices experienced a dramatic spike following Iran’s assault on energy infrastructure across the Middle East, a retaliatory action after strikes on its South Pars gas facility. Brent crude rocketed past the $115 per barrel mark.
The surge in petroleum prices drove bond yields higher while bolstering the US dollar’s strength. This dual effect created downward pressure across both cryptocurrency and equity markets.
Equity Markets Face Pressure
US equity futures experienced declines on Thursday. Dow Jones Industrial Average futures dropped 0.3%, while contracts linked to the S&P 500 and Nasdaq 100 each retreated approximately 0.2%.
Both the Dow and S&P 500 concluded Wednesday’s session at their weakest points of 2026. Asian equity markets similarly declined during early Thursday trading.
The Bank of Japan maintained its current interest rate policy on Thursday. Japanese central bank officials cautioned that escalating Middle East tensions and rising petroleum prices could influence the nation’s inflation trajectory.
Market participants are now focused on weekly unemployment claims data and the Philadelphia Fed Manufacturing Index, both scheduled for release Thursday.
Micron Technology experienced a more than 2% decline in extended trading hours, despite the semiconductor manufacturer posting robust quarterly revenue gains. Both Alibaba and FedEx were scheduled to announce earnings ahead of Thursday’s market opening.
Federal Reserve Chair Jerome Powell’s cautious commentary has led market participants to anticipate prolonged maintenance of current rate levels, notwithstanding the Fed’s suggestion that a single rate reduction could still occur in 2026.
Alternative Cryptocurrencies and Kraken’s IPO Postponement
Major alternative cryptocurrencies experienced significant losses on Thursday. Ethereum tumbled 6% to $2,193. XRP retreated 3.5% to $1.47. Both Solana and Polygon registered 4% declines, while Cardano fell 6%. Dogecoin decreased 5%.
Cryptocurrency platform Kraken has postponed its initial public offering plans, as reported by CoinDesk. The exchange had confidentially submitted preliminary documentation to the SEC in November 2024.
Kraken attributed the postponement to unfavorable market dynamics. The company’s most recent valuation stood at $20 billion following an $800 million funding round.
Declining cryptocurrency valuations and reduced trading activity since late 2025 have complicated public market debuts for digital asset companies. Kraken indicated it would postpone its IPO until market conditions demonstrate improvement.
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