Bitcoin Falls Below $71K as Powell Warns Oil Prices Could Boost Inflation
Bitcoin slipped under $71,000 Wednesday after Federal Reserve Chair Jerome Powell cited rising energy prices amid the Iran war as a potential inflationary risk. BTC traded near $69,494 following the Fed’s announcement.
The central bank held interest rates steady as expected. During his post-meeting press conference, Powell acknowledged that surging oil prices are already feeding into the Fed’s outlook. “The oil shock for sure shows up” in inflation projections, he said, while adding that “nobody knows” how persistent the impact will be.
Fed policymakers raised their 2026 inflation forecast to 2.7% from 2.4%, reflecting concerns that price pressures could remain elevated longer than anticipated. Powell dismissed comparisons to 1970s-style stagflation, noting unemployment is near long-term norms and inflation is only modestly above target. “What we have is some tension between the goals, and we’re trying to manage our way through it,” he said.
Markets were already under pressure from weak February inflation data and geopolitical risks. Bitcoin later fell to around $70,900, down nearly 5% in 24 hours, while Ether (ETH) dropped 6.5%.
U.S. equities closed at session lows, with the S&P 500 down 1.4% and Nasdaq off 1.5%. Gold fell 3.1% to below $4,850 an ounce, its lowest in over a month.
Crypto-related stocks mirrored the declines: Strategy (MSTR) and Bitmine (BMNR) fell 5%-6%, Galaxy (GLXY) dropped nearly 7%, and Gemini (GEMI) plunged 15% to near its lowest level since going public last year.
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