Crypto markets fell broadly on Thursday, brushing off the positive momentum from a newly signed Iran peace deal that boosted equities, after the Federal Reserve held interest rates steady but delivered a more hawkish outlook centered on persistent inflation pressures rather than growth support.

Bitcoin traded near $63,900, down about 3% over the past 24 hours, though still up roughly 2% on the week, according to CoinDesk data. The weakness was widespread across major tokens: Ether declined 3.4% to $1,733, XRP dropped 3.9% to $1.17, and Solana slid 3.6% to $71. Hyperliquid’s HYPE, which had led gains earlier in the week, posted the steepest fall at 7.2% to $69, although it remains up about 28% over seven days. Tron was the only major asset to move higher, gaining 0.9%.

The Federal Reserve was the key catalyst. While policymakers left rates unchanged at 3.5%–3.75%, updated forecasts pointed to higher inflation risks and a slower path for future rate cuts, with some officials even signaling that additional hikes could still be on the table.

This was the first policy meeting under new Fed Chair Kevin Warsh, who highlighted robust internal debate and reaffirmed the central bank’s focus on restoring price stability. The tone of the meeting was interpreted as hawkish, reinforcing expectations of tighter financial conditions that tend to weigh on liquidity-driven assets like crypto.

Equity markets responded differently, supported by geopolitical developments. President Donald Trump signed a preliminary agreement with Iran aimed at ending hostilities and reopening the Strait of Hormuz, improving sentiment across traditional risk assets.

S&P 500 futures rose as much as 0.9%, while Nasdaq futures climbed up to 1.5%. Brent crude slipped toward $78 per barrel. Crypto, however, failed to mirror the equity strength, highlighting its current sensitivity to monetary policy rather than geopolitical relief.

Analysts expect Bitcoin to remain range-bound in the absence of a stronger catalyst. “We expect bitcoin to continue to trade in the $60,000 to $70,000 range in the coming weeks absent any major catalyst,” said Hashdex’s Gerry O’Shea, noting that potential triggers include the CLARITY Act becoming law or further easing in US-Iran tensions.

He added that sentiment remains subdued as investors rotate toward IPOs and AI-linked equities, though institutional inflows and regulatory clarity could eventually support a return of capital to digital assets.

Overall, the market structure still points to consolidation rather than capitulation. Bitcoin holding near the low $64,000 range suggests selling pressure may be stabilizing, but upside remains capped as tighter Fed policy continues to constrain liquidity conditions.