Bitcoin dropped 4.2% to $71,235 late Wednesday after reaching nearly $75,600 earlier in the week, according to CoinGecko data. The decline followed a shift in interest-rate expectations after the Federal Reserve held its benchmark rate at 3.5% to 3.75% and raised its 2026 inflation forecast to around 2.7%.
Fed Chair Jerome Powell indicated policymakers anticipate only limited progress on inflation, reinforcing a higher-for-longer rate stance. Rising oil prices and a stronger-than-expected producer price index reading further complicated the outlook for rate cuts. Brent crude futures climbed above $110 a barrel amid attacks on Middle Eastern energy infrastructure.
Despite the selloff, U.S.-listed spot Bitcoin ETFs recorded roughly $1.16 billion in inflows across seven consecutive sessions through Tuesday, per CoinGlass data. Analyst Rachael Lucas of BTC Markets said sustained institutional demand suggests investors are treating Bitcoin as a long-term portfolio allocation rather than a speculative position.
Originally reported by Decrypt.
