Bitcoin Extends Losses as Hawkish Fed Minutes and Geopolitical Tensions Weigh on Sentiment

Bitcoin declined further on Thursday, extending its recent downtrend after hawkish signals from the Federal Reserve’s January meeting minutes heightened uncertainty over the outlook for U.S. interest rates. The cryptocurrency sector was also pressured by broader risk aversion amid escalating geopolitical tensions between the United States and Iran.

The world’s largest cryptocurrency fell 1.3% to $66,963.8 by 01:06 ET (06:06 GMT), continuing to underperform traditional safe-haven assets such as gold, which benefited from rising geopolitical risks.

Cryptocurrencies also lagged a rally in global technology stocks, despite their historical tendency to move in tandem with the sector.

Fed Minutes Add Pressure to Bitcoin

Sentiment toward Bitcoin remained fragile after the Fed minutes revealed growing divisions among policymakers over the future path of interest rates and inflation. “Several” officials warned that rate hikes could be necessary if inflation remains stubbornly above the central bank’s 2% target, a message that unsettled markets expecting further easing later this year.

Policymakers also expressed uncertainty over the economic impact of artificial intelligence, with opinions split on whether the technology will ultimately support growth or weigh on it. For crypto markets, the prospect of higher interest rates was particularly damaging, as elevated borrowing costs tend to undermine speculative, non-yielding assets such as Bitcoin.

Following the release of the minutes, traders were seen rotating toward the U.S. dollar, adding further pressure on digital assets.

Goldman CEO Signals Caution on Crypto

Adding to the cautious tone, Goldman Sachs (NYSE: GS) CEO David Solomon said he owns very little Bitcoin personally, although he is closely monitoring the asset and its potential impact on financial markets.

Speaking at the World Liberty Forum on Wednesday, Solomon said Goldman remains cautious on crypto but could consider expanding its involvement if regulatory clarity improves under the administration of President Donald Trump. Solomon has previously expressed interest in the sector, despite the bank’s measured approach.

Altcoins Remain Under Pressure

Broader cryptocurrency markets traded mostly sideways but remained under sustained pressure after steep losses in recent months. With few positive catalysts, investor sentiment across the sector stayed weak.

Attention is now firmly on upcoming U.S. economic data, particularly Friday’s Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—which could provide fresh clues on the direction of interest rates.

Among major tokens, Ether fell 1.1% to $1,980.99, while XRP dropped nearly 4% to $1.4228. Solana, Cardano, and BNB declined between 0.4% and 3%.

Meme coins also struggled, with Dogecoin down 2.5% and the $TRUMP token shedding 1.7%, underscoring the fragile risk appetite across the crypto market.