Bitcoin ticked below $66,000 overnight and dipped into the mid‑$65,000 range early Wednesday as investors braced for a Federal Reserve meeting that could mark the most hawkish turn in years.
Kevin Warsh is set to chair his first FOMC rate decision, with rates widely expected to hold unchanged even as he once favored cuts and Trump continues pushing the Fed toward lower rates.
Fed dot plot set to show waning support for 2026 rate cuts
Warsh’s debut meeting as Fed chair arrives amid a sharp reversal in policy expectations. Markets expected multiple rate cuts in January based on weak employment and falling inflation, but four months later, job growth has rebounded and inflation has climbed past 3%, erasing the case for lower rates.
Heavy AI-related investment has driven up demand for chips, power, and construction materials, while strong equity markets have boosted spending and the Iran conflict has pushed up energy and commodity costs.
