Bitcoin is trading near $66,000 on Wednesday after Federal Reserve chair Kevin Warsh used his first press conference to signal that the central bank expects no rate cuts for the remainder of 2026, a hawkish position that tempered earlier optimism in both crypto and equity markets.

The Fed held its benchmark interest rate at 3.5 percent at the June meeting, a decision that was widely anticipated. But Warsh’s language at the press conference removed what remaining market participants had priced in for a potential cut later in the year. He cited persistent inflation, elevated energy costs linked to the recent Iran war, and ongoing uncertainty in global supply chains as reasons the Fed needs more data before easing.

Bitcoin had rallied toward $68,000 in the days following the US-Iran peace deal announcement, as oil prices fell and global risk sentiment improved. The Fed’s no-cut signal pulled prices back from those highs. The cryptocurrency settled around $66,000 through Tuesday’s trading session and held that range into Wednesday morning.

The XRP ETF, which reached $1.44 billion in cumulative inflows last week, also pulled back slightly after the Fed statement. Ethereum stabilized above a key support zone but did not reclaim its recent highs. The broader crypto market tracked the interest rate sensitivity that has defined digital asset performance since 2022.

Warsh, who replaced Jerome Powell as Fed chair earlier this year, has taken a more hawkish posture than markets initially expected. His June press conference was his first as chair, and the tone he struck was notably different from the more cautious hedging that characterized Powell’s final months in the role. Warsh said the Fed would not cut rates simply because inflation appeared to be stabilizing — it needed to see a sustained decline before easing monetary policy.

Oil prices falling to a three-month low after the Iran deal should, in theory, reduce inflationary pressure from energy costs over the coming months. But Warsh noted that the peace deal had not yet produced a full reopening of the Strait of Hormuz and that supply recovery could take time. Energy prices remain elevated relative to their pre-conflict levels.

Crypto markets have increasingly behaved like risk assets, tracking equity sentiment and rate expectations in ways that early Bitcoin proponents argued would never happen. The June Fed meeting confirmed that pattern holds. When Warsh ruled out cuts, Bitcoin fell. When oil dropped on peace deal news two weeks ago, Bitcoin rallied. The asset class is no longer insulated from macroeconomic policy cycles. You can find more on recent crypto developments, including XRP ETF flows and BlackRock’s new Bitcoin ETF, in our crypto section.

The next Fed meeting is scheduled for late July. Markets are now pricing zero probability of a rate cut at that meeting. Some analysts have pushed their first cut expectation out to early 2027, depending on whether energy prices fall further and whether the Iran deal holds through the 60-day nuclear negotiation period.

Bitcoin’s current price near $66,000 leaves it roughly 8 percent below its recent high of $71,500 set in late May. The no-cut signal from Warsh removes one potential catalyst for a move higher, though the peace deal and continued institutional accumulation through ETF products remain supportive factors in the medium term.