The cryptocurrency market faced a downturn on April 29, 2026, as two major macro events simultaneously pressured risk assets. The Federal Reserve left interest rates unchanged at 3.50%–3.75% in what is likely Jerome Powell’s final decision as Fed Chair, while President Trump escalated geopolitical tensions by rejecting Iran's offer to reopen the Strait of Hormuz and signaling fresh military strikes.
Bitcoin (BTC) fell to $75,164, down 1.29% on the day and 4.83% over the past week. Ethereum (ETH) dropped to $2,241, a 2.09% decline in 24 hours. XRP slipped to $1.35, down 2.03%. The broader crypto market cap stood at $2.53 trillion, with the Fear and Greed Index at 39—indicating fear.
Fed’s Language Shift The rate hold was widely expected, but the Fed’s description of inflation changed notably. For months, policymakers had called inflation “somewhat elevated.” In Wednesday’s statement, they removed “somewhat” and simply said inflation “is elevated.” This shift signals that rate cuts may be further away, tightening conditions for speculative assets like crypto. The vote showed unusual division: four officials dissented, with one supporting a rate cut and three objecting to language suggesting future easing.
Iran Escalation President Trump rejected Iran’s offer to reopen the Strait of Hormuz and confirmed plans for a “short and powerful” wave of strikes on Iranian infrastructure, according to Axios. He maintained a naval blockade until Iran agrees to a nuclear deal. U.S. oil prices surged above $107 per barrel, with Brent crude trading around $115. Higher energy costs feed directly into inflation, reducing the Fed’s ability to cut rates and historically pushing investors away from speculative assets.
Bitcoin Price Levels Bitcoin held near $75,000 support. A break below could expose the $71,400–$74,000 demand area. On the upside, $80,000 remains the key resistance, with a move above potentially targeting $82,000 and then $85,000–$88,000. March CPI stood at 3.3% year-over-year, above the Fed’s 2% target, while oil above $100 added inflation pressure. Arthur Hayes maintained a bullish long-term view, projecting Bitcoin could reach $125,000 by year-end if global liquidity expands.
