Cryptocurrency markets declined 5.4% as major digital assets faced selling pressure preceding the Federal Reserve’s policy announcement. Bitcoin fell 0.4% to $117,700 alongside significant drops in Ethereum and XRP, reflecting investor caution toward ongoing Federal Open Markets Committee (FOMC) deliberations.
Market analysts attribute the downturn to uncertainty surrounding the Fed’s interest rate trajectory, with consensus expecting officials to maintain current rates in July. However, growing internal divisions within the central bank suggest potential rate cuts later this year, contributing to market apprehension.
Despite the weakness in spot markets, Bitcoin and Ethereum exchange-traded funds demonstrated resilience. Bitcoin ETF inflows reached $80 million while Ethereum-based funds accelerated to $218 million, indicating sustained institutional interest amid broader volatility.
Market observers anticipate continued turbulence due to unresolved policy divergence among Fed policymakers. Nevertheless, the strength in crypto ETF investments underscores institutional confidence in digital assets beyond immediate macroeconomic headwinds.