Key Takeaways
Bitcoin experienced a significant downturn on Thursday, falling below the $71,000 mark to close at $70,817, a decline of 4.2%. This pullback was attributed to the Federal Reserve's decision to maintain current interest rates while expressing concerns about escalating inflation.
The Federal Reserve revised its inflation forecast for 2026 upwards to 2.7%, an increase from the previous projection of 2.4%. Central bank officials indicated that rising energy costs could potentially delay anticipated interest rate cuts.
Elevated oil prices have contributed to rising bond yields and a stronger dollar, exerting a dual pressure on both cryptocurrency and traditional stock markets.
Stocks Face Downward Pressure
US stock index futures broadly declined on Thursday. Dow Jones Industrial Average futures were down 0.3%, while S&P 500 and Nasdaq 100 contracts both retreated by approximately 0.2%.
Both the Dow Jones and S&P 500 closed at their lowest points in 2026 during Wednesday's trading session. Asian stock markets also saw declines in early Thursday trading.
The Bank of Japan maintained its current interest rate policy on Thursday, with officials warning that ongoing Middle East tensions and volatile crude oil markets could impact the nation's inflation outlook.
Market participants are now closely monitoring the upcoming weekly jobless claims data and the Philadelphia Fed Manufacturing Index, both scheduled for release on Thursday.
Cautious remarks from Federal Reserve Chair Jerome Powell have led market participants to believe that interest rates will remain unchanged for the foreseeable future, despite the Fed signaling a potential single rate cut in 2026.
Altcoins and Kraken IPO Postponement
Most major altcoins saw notable declines on Thursday. Ethereum dropped 6% to $2,193, and XRP fell 3.5% to $1.47. Solana and Polygon both slipped 4%, while Cardano was down 6%. Dogecoin retraced 5%.
Cryptocurrency exchange Kraken has postponed its anticipated Initial Public Offering (IPO), according to CoinDesk. The exchange had quietly filed preliminary documents with the SEC in November 2024.
Kraken cited unfavorable market conditions as the reason for the delay. The platform was valued at $20 billion following an $8 million funding round.
Declining crypto valuations and reduced trading activity since late 2025 have made it challenging for digital asset companies to pursue public listings. Kraken announced that it will delay its IPO plans until market conditions show significant improvement.