Crypto slips as Fed’s hawkish outlook in Warsh’s debut

Major cryptocurrencies fell Wednesday after the Federal Reserve left the target federal funds rate at 3.50%–3.75% and released more hawkish economic projections in Kevin Warsh’s first meeting as chair. Bitcoin traded near $64,150, down about 2.2% over 24 hours, while ether slipped roughly 3.6%.

The Federal Open Market Committee voted 12-0 to keep the rate range. Policymakers raised their inflation forecasts and projected a slower path to cutting rates than they had in March.

Other large tokens moved lower: XRP and Solana each lost about 3%. Hyperliquid’s token declined about 1.5% to $72 after reaching an all-time high the previous day. The GMCI 30 index, which tracks the 30 largest cryptocurrencies by market value, fell roughly 2.6% on the session and is down nearly 36% year-to-date.

Safe-haven metals also weakened after the announcement. Gold fell about 2.2% and silver dropped roughly 4%.

The policy statement was notably shorter than those issued under the previous chair and omitted the forward-guidance language used earlier. Warsh described the new format as focused on presenting “the facts” rather than guiding market expectations.

Market participants pointed to the updated projections, more than the interest-rate decision itself, as the key influence on trading. Matt Mena, senior crypto research strategist at 21Shares, described the market as “absorbing a hawkish macro backdrop while rotation and genuine demand continue to surface in the strongest names.”

Higher rates and a slower timetable for cuts can raise borrowing costs and shift allocations toward yield-bearing instruments. Traders and portfolio managers will watch upcoming economic data and further Fed remarks for signals about the timing of future rate moves and how the central bank will communicate policy under Warsh.