Daily Market Update: Fed Inflation Warning and Middle East Oil Surge Push Bitcoin and Stocks Lower

TLDR

• Bitcoin fell 4.2% to around $70,800 as the Fed held rates and warned of inflation risks
• Oil prices surged past $110 a barrel after Iran attacked Middle East energy facilities
• The Fed raised its 2026 inflation forecast to 2.7%, reducing hopes for rate cuts
• US stock futures declined, with the Dow and S&P 500 hitting their lowest levels of 2026
• Crypto exchange Kraken paused its IPO plans due to tough market conditions

Bitcoin dropped below $71,000 on Thursday, falling 4.2% to $70,817. The drop came after the Federal Reserve held interest rates steady and raised inflation concerns.

Bitcoin had been trading above $74,000 the day before and had touched nearly $76,000 earlier in the week.

The Fed raised its 2026 inflation forecast to 2.7%, up from 2.4%. Policymakers said rising energy prices could delay future rate cuts.

Oil prices jumped sharply after Iran attacked energy facilities in the Middle East, following a strike on its South Pars gas field. Brent crude surged past $115 a barrel.

Higher oil prices pushed bond yields up and strengthened the US dollar. That combination put pressure on crypto and stocks alike.

Stocks Also Take a Hit

US stock futures fell on Thursday. Futures tied to the Dow Jones Industrial Average dropped 0.3%, while S&P 500 and Nasdaq 100 contracts each fell about 0.2%.

The Dow and S&P 500 closed Wednesday at their lowest levels of 2026. Asian stocks also slipped in early Thursday trading.

The Bank of Japan held rates steady on Thursday. It warned that the Middle East conflict and crude oil prices could affect Japan’s inflation outlook.

Traders are now watching weekly jobless claims and the Philadelphia Fed Manufacturing Index, both due Thursday.

Micron Technology shares fell more than 2% in after-hours trading, even after the chipmaker reported strong quarterly revenue growth. Alibaba and FedEx were both set to report earnings before Thursday’s opening bell.

Fed Chair Jerome Powell’s hawkish comments have led traders to believe rates will stay where they are for now, despite the Fed indicating one cut could still happen in 2026.

Altcoins and Kraken IPO News

Most major altcoins also fell sharply on Thursday. Ethereum dropped 6% to $2,193. XRP fell 3.5% to $1.47. Solana and Polygon each declined 4%, while Cardano dropped 6%. Dogecoin slipped 5%.

Crypto exchange Kraken paused its planned IPO, according to CoinDesk. The company had confidentially filed a draft with the SEC in November 2024.

Kraken cited difficult market conditions for the delay. The company was last valued at $20 billion after raising $800 million.

Weaker crypto prices and lower trading volumes since late 2025 have made it harder for crypto companies to go public. Kraken said it will wait for market conditions to improve before moving forward.

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