Bitcoin slipped below the $88,000 mark on Thursday after the U.S. Federal Reserve left interest rates unchanged on Wednesday, with Chair Jerome Powell’s cautious tone weighing on upside momentum.
Heightened geopolitical tensions between the United States and Iran, along with ongoing concerns about the Fed’s independence, have further impacted risk appetite, keeping the crypto market under pressure.
As of 1:54 GMT, Bitcoin fell 1.52 percent to $87,816.
Powell’s comments limit Bitcoin’s near-term upside
The Fed held interest rates steady at 3.50–3.75 percent at the conclusion of its two-day meeting on Wednesday, though Governors Stephen Miran and Christopher Waller dissented, arguing for a 25-basis-point cut. The decision was largely priced in by markets, leaving risk assets such as Bitcoin in a holding pattern. However, the absence of dovish signals in the post-meeting press conference, with Chair Jerome Powell stressing that inflation remains well above the 2 percent target, limited Bitcoin’s near-term upside.
Investor caution also persists over perceived threats to the Federal Reserve’s independence. A Justice Department criminal investigation into Chair Jerome Powell and a push to remove Fed Governor Lisa Cook have heightened scrutiny over the central bank’s ability to operate free from political pressure.
At the same time, markets appear confident the Fed will keep policy unchanged through the end of this quarter, and potentially until Powell’s term expires in May. Even so, traders continue to price in two rate cuts in 2026, a scenario that could offer longer-term support for Bitcoin.
Read: Bitcoin falls below $89,000 as market awaits Fed rate decision
Geopolitical tensions drive investors toward safe havens
On the geopolitical front, U.S. President Donald Trump called on Iran to return to negotiations over its nuclear program, warning that any future U.S. military action would be harsher than the campaign carried out in June. Iran responded by threatening retaliation against the United States, Israel and their allies.
The escalating tensions have fueled a risk-off mood in markets, driving investors toward safe-haven assets such as gold and silver, both of which have surged to fresh record highs. Risk-sensitive assets, including Bitcoin, have meanwhile remained under pressure.
The broader crypto market followed Bitcoin’s earlier gains, with XRP adding 1.46 percent to $1.91. Solana gained 2.35 percent to $126.63, while Cardano rose about 2.23 percent. Among meme tokens, Dogecoin jumped 2.98 percent.
The broader crypto market followed Bitcoin’s decline, with XRP falling 3.09 percent to $1.87. Solana dipped 1.94 percent to $122.70, while Cardano fell 3.27 percent to $0.35. Among meme tokens, Dogecoin lost 2.40 percent to $0.12.
