Bitcoin slipped below $71,000 on Wednesday as Federal Reserve Chair Jerome Powell warned that rising oil prices are increasing inflation risks.
The Fed held interest rates steady at 3.50%-3.75%, but Powell acknowledged the impact of higher energy costs on inflation projections.
Policymakers raised their 2026 inflation forecast to 2.7% from 2.4%, signaling concerns about prolonged price pressures.
Despite this, Powell dismissed comparisons to 1970s-style stagflation, noting that unemployment remains stable and inflation is only slightly above target.
Markets fell further after the Fed news, with the S&P 500 and Nasdaq closing at session lows. Bitcoin was down nearly 5% over 24 hours, while Ether dropped 6.5%.
Digital asset-related stocks also declined sharply, including Galaxy (GLXY) down 7% and Gemini (GEMI) down 15%.
