Bitcoin under pressure beneath $71,000 and stocks end lower, reflecting fading investor optimism for a 2026 Fed rate cut.

Bitcoin Dips Below $71K as Powell Flags Oil Prices as Inflation Risk

Bitcoin fell below $71,000 on Wednesday as Federal Reserve Chair Jerome Powell highlighted rising energy prices amid the Iran war as a new risk to inflation. BTC traded near $69,494 following Powell’s remarks.

The Fed held interest rates steady as expected, but during his post-meeting press conference, Powell acknowledged that the recent surge in oil prices is already influencing the central bank’s outlook. “The oil shock for sure shows up” in higher inflation projections, he said, while cautioning that “nobody knows” yet how persistent the impact will be.

Policymakers raised their 2026 inflation forecast to 2.7% from 2.4%, signaling concerns that price pressures may remain elevated longer than anticipated. Powell dismissed comparisons to a 1970s-style stagflation, noting that unemployment remains 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 had already been under pressure following weak February inflation data and ongoing geopolitical tensions. Bitcoin fell further late Wednesday, trading around $70,900, down nearly 5% over 24 hours. Ether (ETH) also declined 6.5%.

U.S. equities closed at session lows, with the S&P 500 down 1.4% and the Nasdaq off 1.5%. Gold extended losses below $4,850 an ounce, down 3.1% on the day to its weakest level in over a month.

Digital-asset-related stocks mirrored crypto declines. Strategy (MSTR) and Bitmine (BMNR) were down 5%-6%, investment firm Galaxy (GLXY) fell almost 7%, and crypto exchange Gemini (GEMI) plunged 15% to near its lowest price since going public last year.