Hawkish Fed hold sparks volatility in Bitcoin and Ethereum ahead of Kevin Warsh remarks

Crypto markets reacted to a Federal Reserve decision that kept interest rates unchanged while signaling higher inflation, with at least some major assets moving lower on the news. Bitcoin in particular sold off after the FOMC and a subsequent speech from newly appointed Fed Chair Kevin Warsh, including a drop from above $66,000 to the $64,000s within minutes ^{[1] [2]}.

Elsewhere, price action was mixed: one report said Bitcoin dipped toward $64,750 on the hawkish hold before recovering within an hour and trading near $65,550. Ethereum was reported to be holding close to the $1,800 level as traders awaited the Fed’s June communication, focusing on inflation, guidance, and liquidity conditions for the second half of 2026 ^{[3] [4]}.

The reports collectively point to a hawkish tilt in the Fed’s messaging under Kevin Warsh as a key near-term driver of volatility across Bitcoin and Ethereum ^{[1] [3] [2] [4]}.