{"id":128603,"date":"2026-06-18T13:48:32","date_gmt":"2026-06-18T09:48:32","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=128603"},"modified":"2026-06-18T13:48:37","modified_gmt":"2026-06-18T09:48:37","slug":"bitcoin-tumbles-2-8-as-feds-hawkish-shock-sends-december-rate-hike-odds-to-85-iran-mou-fails-to-lift-crypto","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-tumbles-2-8-as-feds-hawkish-shock-sends-december-rate-hike-odds-to-85-iran-mou-fails-to-lift-crypto\/06\/18\/market-updates\/","title":{"rendered":"Bitcoin Tumbles 2.8% as Fed&#8217;s Hawkish Shock Sends December Rate Hike Odds to 85%: Iran MOU Fails to Lift Crypto"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bitcoin reverses:<\/strong> The world&#8217;s largest crypto fell 2.8% to $63,964.6, giving back a bulk of its recent recovery gains.<\/li>\n\n\n\n<li><strong>Fed the culprit:<\/strong> The central bank held rates but showed a growing number of policymakers considering a 2026 hike \u2014 spooking risk assets.<\/li>\n\n\n\n<li><strong>December hike now priced in:<\/strong> Investors are pricing at least one 25 basis point hike by year-end, per CME FedWatch.<\/li>\n\n\n\n<li><strong>Warsh signals communication overhaul:<\/strong> The new Fed chair&#8217;s plans to revamp how the Fed communicates its rate intentions sparked additional market uncertainty.<\/li>\n\n\n\n<li><strong>High rates crush crypto appeal:<\/strong> Elevated borrowing costs diminish the attraction of speculative assets versus safer debt instruments.<\/li>\n\n\n\n<li><strong>Iran MOU signed:<\/strong> The U.S. and Iran remotely signed the framework deal Wednesday evening, paving the way for comprehensive peace talks.<\/li>\n\n\n\n<li><strong>Nuclear talks central:<\/strong> Iran&#8217;s nuclear program will be a key focus of the upcoming 60-day negotiation period.<\/li>\n\n\n\n<li><strong>Peace deal failed to lift crypto:<\/strong> Risk-on sentiment from the MOU was channeled into AI and chipmaking stocks \u2014 not cryptocurrencies.<\/li>\n\n\n\n<li><strong>AI rotation accelerates:<\/strong> The shift from crypto to fundamentally sound tech stocks has intensified in recent months.<\/li>\n\n\n\n<li><strong>ETF outflows extend:<\/strong> The persistent institutional exodus from spot Bitcoin ETFs continues to weigh.<\/li>\n\n\n\n<li><strong>Ether drops 3.6%:<\/strong> To $1,729.19 \u2014 underperforming even Bitcoin.<\/li>\n\n\n\n<li><strong>XRP slides 4.3%:<\/strong> A sharp reversal after recent gains.<\/li>\n\n\n\n<li><strong>Solana, Cardano, BNB fall 3-5%:<\/strong> Broad altcoin retreat.<\/li>\n\n\n\n<li><strong>Memecoins hit:<\/strong> Dogecoin fell 3.5%; $TRUMP slid 2.9%.<\/li>\n<\/ul>\n\n\n\n<p>Bitcoin fell on Thursday, reversing a bulk of recent gains after hawkish signals from the Federal Reserve saw markets ratchet up expectations for an interest rate hike this year.<\/p>\n\n\n\n<p>The signing of a U.S.-Iran peace deal did little to shore up sentiment toward cryptocurrencies, with the sector continuing to vastly lag technology and artificial intelligence stocks.<\/p>\n\n\n\n<p>Bitcoin fell 2.8% to $63,964.6 by 01:31 ET (05:31 GMT).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bitcoin Pressured by Hawkish Fed Signals<\/h2>\n\n\n\n<p>Bitcoin tumbled in overnight trade after the Fed left interest rates steady as expected.<\/p>\n\n\n\n<p>But the central bank meeting showed an increasing number of policymakers considering an interest rate hike later in 2026, amid risks from high inflation.<\/p>\n\n\n\n<p>New Fed Chair Kevin Warsh also signaled an overhaul in how the Fed would communicate its plans for interest rates \u2014 sparking additional uncertainty in markets.<\/p>\n\n\n\n<p>Investors were seen pricing in at least one 25 basis point hike by end-2026, CME FedWatch showed.<\/p>\n\n\n\n<p>High rates bode poorly for speculative, risk-driven assets like crypto, given that they diminish the appeal of investing in the sector over safer plays like debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">U.S. and Iran Sign Framework Peace Deal<\/h2>\n\n\n\n<p>A host of reports on Wednesday evening showed the United States and Iran had remotely signed a memorandum of understanding to end their war and reopen key shipping lanes in the Middle East.<\/p>\n\n\n\n<p>The framework deal paves the way for more U.S.-Iran talks toward a lasting, comprehensive peace agreement. Central to the upcoming talks will be Iran&#8217;s nuclear program, which the United States has vehemently opposed.<\/p>\n\n\n\n<p>The development sparked a risk-on rally in markets, although investors stuck to AI and chipmaking stocks with sound fundamentals over more speculative plays like metals and crypto.<\/p>\n\n\n\n<p>This trend has picked up steam in recent months, driving extended outflows from crypto \u2014 especially in spot exchange-traded funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Crypto Price Today: Altcoins Dither With Bitcoin<\/h2>\n\n\n\n<p>Broader crypto prices largely retreated in tandem with Bitcoin, taking little support from the U.S.-Iran development.<\/p>\n\n\n\n<p>Ether, the world&#8217;s second-largest cryptocurrency, fell 3.6% to $1,729.19, while XRP slid 4.3%.<\/p>\n\n\n\n<p>Solana, Cardano, and BNB fell between 3% and 5%.<\/p>\n\n\n\n<p>Among memecoins, Dogecoin fell 3.5%, while $TRUMP fell 2.9%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bitcoin reverses: The world&#8217;s largest crypto fell 2.8% to $63,964.6, giving back a bulk of its recent recovery gains. Fed the culprit: The central bank held rates but showed a growing number of policymakers considering a 2026 hike \u2014 spooking risk assets. December hike now priced in: Investors are pricing at least one &hellip;<\/p>\n","protected":false},"author":9,"featured_media":99111,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[],"class_list":["post-128603","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=128603"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128603\/revisions"}],"predecessor-version":[{"id":128604,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128603\/revisions\/128604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/99111"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=128603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=128603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=128603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}