Key Highlights
- Bitcoin declined 4.2% to approximately $70,800 following the Federal Reserve’s rate decision and inflation warnings
- Crude oil prices climbed above $110 per barrel after Iranian strikes on Middle Eastern energy infrastructure
- Federal Reserve revised its 2026 inflation projection upward to 2.7%, dampening rate cut expectations
- American equity futures slumped, with major indices reaching 2026 lows
- Cryptocurrency platform Kraken suspended its public offering plans amid challenging market dynamics
The cryptocurrency market saw significant pressure on Thursday as Bitcoin retreated below the $71,000 threshold, settling at $70,817 with a 4.2% decline. The selloff followed the Federal Reserve’s decision to maintain current interest rates while simultaneously expressing heightened inflation concerns.
Just a day earlier, [[LINK_START_3]]Bitcoin[[LINK_END_3]] was changing hands above $74,000, and had briefly approached the $76,000 mark earlier in the week.
The central bank elevated its inflation projection for 2026 to 2.7%, representing an increase from the previous 2.4% estimate. Federal Reserve officials indicated that escalating energy costs could postpone anticipated interest rate reductions.
Crude [[LINK_START_4]]oil prices[[LINK_END_4]] experienced a dramatic surge following Iranian military operations targeting energy infrastructure across the Middle East, a response to strikes on Iran’s South Pars natural gas complex. Brent crude rocketed beyond $115 per barrel.
The spike in energy prices triggered a rise in government bond yields while simultaneously boosting the US dollar’s value. This dual dynamic created headwinds for both cryptocurrency assets and traditional equities.
Equity Markets Under Pressure
American stock index futures declined Thursday morning. Contracts linked to the Dow Jones Industrial Average retreated 0.3%, while both S&P 500 and Nasdaq 100 futures dropped approximately 0.2%.
Both the Dow and S&P 500 concluded Wednesday’s session at their weakest points in 2026. Stock markets across Asia similarly experienced declines during early Thursday trading.
Japan’s central bank maintained its current rate policy on Thursday while acknowledging that escalating tensions in the Middle East and volatile crude prices could impact the nation’s inflation trajectory.
Market participants are now focused on weekly unemployment claims data and the Philadelphia Federal Reserve Manufacturing Index, both scheduled for release Thursday.
Micron Technology experienced a greater than 2% drop in extended trading despite posting robust quarterly revenue expansion. Both Alibaba and FedEx were scheduled to announce earnings results prior to Thursday’s market open.
Fed Chairman Jerome Powell’s cautious tone has reinforced trader expectations that rates will remain unchanged for the foreseeable future, although policymakers have suggested one rate reduction could still materialize in 2026.
Alternative Cryptocurrencies and Kraken’s IPO Postponement
The broader cryptocurrency market experienced widespread losses on Thursday. Ethereum tumbled 6% to $2,193. XRP decreased 3.5% to $1.47. Both Solana and Polygon registered 4% declines, while Cardano retreated 6%. Dogecoin fell 5%.
Digital asset exchange Kraken has put its initial public offering on hold, as reported by CoinDesk. The platform had submitted a confidential draft registration with the Securities and Exchange Commission in November 2024.
Kraken attributed the postponement to unfavorable market conditions. The exchange commanded a $20 billion valuation following an $800 million capital raise.
Declining cryptocurrency valuations and reduced trading activity since late 2025 have created obstacles for digital asset companies pursuing public listings. Kraken indicated it would delay its IPO until market conditions become more favorable.
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