New Federal Reserve Chair Powell’s debut release of a hawkish signal caused BTC to promptly fall below the $65,000 threshold.

The Federal Reserve’s new chair, Warsh, presided over the meeting for the first time, kept interest rates unchanged, and released hawkish signals. Bitcoin fell below $65,000, and the crypto market saw $442 million in liquidations.

Kevin Warsh presides over the FOMC for the first time as the Federal Reserve keeps interest rates unchanged

At its latest Federal Open Market Committee (FOMC) meeting, the U.S. Federal Reserve (Fed) announced it would keep the benchmark interest rate unchanged—also the first rate-decision meeting new chair Kevin Warsh presided over. Although markets widely expected the Fed to hold steady, the signals released at the subsequent press conference were more hawkish than expected.

Warsh emphasized multiple times in his remarks that the Fed’s most important task at present is still to control inflation and maintain price stability. He said that while some recent inflation data has indeed shown improvement, overall price pressures remain higher than the Fed’s long-term target, so the conditions to start cutting rates have not been met.

Markets initially expected the new chair might signal a more moderate policy stance after taking office, but Warsh’s comments showed that the Fed will remain cautious in the near term—prompting investors to reassess the timing and magnitude of rate cuts this year.

Bitcoin slips below $65,000 as the crypto market comes under broad pressure

Affected by the Fed’s latest policy signals, Bitcoin ($BTC) weakened rapidly after the meeting, at one point falling below the $65,000 psychological level. Ethereum ($ETH) and most major cryptocurrencies also declined in tandem, and crypto-related stocks and mining companies’ shares saw clear pullbacks.

Analysts noted that when the market believes a high-interest-rate environment will persist for longer, capital usually reduces its allocation to high-risk assets. The cryptocurrency market has long been highly sensitive to liquidity changes, making it one of the main bearers of the selling pressure this time.

The derivatives market also saw large-scale liquidations. According to data provided by Coinglass, within a few hours after the FOMC decision was announced, liquidation amounts in the crypto market exceeded $100 million, with concentrated liquidations of long positions—further amplifying market volatility. As of the time of writing, over the past 24 hours, total crypto liquidations reached $442 million (longs $310 million + shorts $131 million).

Image source: Coinglass Liquidations in the crypto market exceeded $100 million within a few hours after the FOMC decision

The Fed reiterates its anti-inflation stance as expectations for rate cuts continue to cool

Warsh showed a clear anti-inflation leaning in his first press conference. He pointed out that the Fed must ensure inflation falls back into an acceptable range, and that prematurely easing monetary policy could rekindle upward pressure on prices.

Some market observers believe Warsh is trying to build the Fed’s policy credibility early in his tenure, so he chose a tougher tone to respond to the market’s expectations for rate cuts. This has also led investors to start readjusting their forecasts for the number of rate cuts and their timing this year.

After the meeting, U.S. Treasury yields rose, the U.S. dollar index remained strong, and alternative assets such as gold and cryptocurrencies faced downward pressure as well.

Market focus turns to the second-half inflation data and policy direction

With Warsh officially taking charge of the Fed, market attention has shifted to inflation and employment data in the coming months. The CPI, PCE, and non-farm employment reports to be released next will become key references for judging the Fed’s policy direction.

If inflation continues to cool, expectations for rate cuts could rise again; if price pressures increase again, the Fed may keep interest rates high for longer, and risk-asset markets will continue to face challenges.

This FOMC meeting not only reflects the Fed’s new policy approach, but also shows that the market is reassessing how U.S. monetary policy affects global financial markets and the cryptocurrency market.