Key Highlights
- Bitcoin declined 4.2% to approximately $70,800 following the Federal Reserve’s decision to maintain current rates while highlighting inflation concerns
- Crude oil prices jumped beyond $110 per barrel after Iranian strikes on Middle Eastern energy infrastructure
- Federal Reserve officials elevated their 2026 inflation projection to 2.7%, diminishing expectations for monetary easing
- Equity futures retreated, sending the Dow and S&P 500 to their weakest positions in 2026
- Digital asset platform Kraken postponed its initial public offering amid challenging market dynamics
Bitcoin experienced a sharp decline on Thursday, sliding 4.2% to reach $70,817 after breaching the $71,000 threshold. The selloff followed the Federal Reserve’s announcement to maintain current interest rates while emphasizing growing inflation risks.
The leading cryptocurrency by market capitalization had been hovering above $74,000 during the previous trading session and reached nearly $76,000 earlier this week. Bitcoin faced selling pressure as macroeconomic headwinds intensified.
Central bank officials revised their 2026 inflation forecast upward to 2.7%, compared to their previous estimate of 2.4%. Federal Reserve policymakers indicated that escalating energy costs could postpone anticipated interest rate reductions.
Oil prices experienced dramatic gains after Iranian forces targeted energy infrastructure across the Middle East, retaliating against an attack on its South Pars gas facility. Brent crude climbed above $115 per barrel during trading.
The surge in petroleum prices contributed to rising bond yields while simultaneously boosting the US dollar. This dual effect created headwinds for both cryptocurrency markets and traditional equity investments.
Equity Markets Face Downward Pressure
US equity futures trended lower during Thursday’s session. Dow Jones Industrial Average futures decreased 0.3%, while contracts linked to the S&P 500 and Nasdaq 100 each retreated approximately 0.2%.
The Dow and S&P 500 concluded Wednesday’s trading at their weakest levels recorded in 2026 thus far. Markets across Asia also experienced modest declines during early Thursday sessions.
Japan’s central bank maintained its current interest rate policy on Thursday. Bank of Japan officials cautioned that escalating Middle Eastern tensions and rising crude oil valuations could influence the nation’s inflation trajectory.
Market participants are now focusing on weekly unemployment claims data and the Philadelphia Fed Manufacturing Index, both scheduled for release Thursday.
Micron Technology shares declined more than 2% during extended trading hours, despite the semiconductor manufacturer posting robust quarterly revenue expansion. Alibaba and FedEx were scheduled to announce earnings before Thursday’s market opening.
Federal Reserve Chairman Jerome Powell’s cautious tone has led market analysts to anticipate rates will remain unchanged for the foreseeable future, although the Fed has suggested one reduction could materialize in 2026.
Alternative Cryptocurrencies Retreat While Kraken Delays Public Debut
Alternative digital currencies experienced widespread declines throughout Thursday’s trading. Ethereum fell 6% to settle at $2,193. XRP decreased 3.5% to $1.47. Solana and Polygon each retreated 4%, while Cardano dropped 6%. Dogecoin declined 5%.
Cryptocurrency trading platform Kraken suspended its initial public offering plans, according to reporting from CoinDesk. The company had submitted a confidential preliminary filing with the Securities and Exchange Commission during November 2024.
Kraken attributed the postponement to challenging market circumstances. The exchange platform received a $20 billion valuation following an $800 million capital raise.
Diminished cryptocurrency valuations and reduced trading activity since late 2025 have created obstacles for digital asset companies pursuing public listings. Kraken representatives indicated the company will resume its IPO process when market fundamentals strengthen.
