Bitcoin Magazine
Bitcoin Price Fights For $70,000 As Federal Reserve Holds Rates
The Federal Reserve on Wednesday kept its benchmark interest rate steady, maintaining the federal funds target range at 3.50% to 3.75%. Bitcoin price is fighting to hold $70,000 amid a complex backdrop of elevated inflation, slowing job growth, and war in the Middle East.
The decision marked the second consecutive FOMC meeting with no change in borrowing costs and followed a pause that began after three rate cuts last year.
Bitcoin price responded to the announcement with a drop in trading, changing hands around $70,500, down 3.6% over the previous 24 hours, according to Bitcoin Magazine Pro. The cryptocurrency had flirted with $76,000 last week, reaching its highest level in over a month, but has since retraced as investors weighed inflation data and global uncertainties.
Voting members of the Federal Open Market Committee were split for a sixth consecutive policy meeting. Eleven supported holding rates steady, while Fed Governor Stephen Miran dissented, advocating a 25-basis-point cut.
BREAKING: Federal Reserve leaves interest rates unchanged. pic.twitter.com/lRijdkYpJb— Bitcoin Magazine (@BitcoinMagazine) March 18, 2026
In its statement, the FOMC noted that “inflation remains somewhat elevated” and that job gains have remained low, even as the unemployment rate ticked up to 4.4% in February. The Fed emphasized a data-dependent approach to future adjustments, signaling that any decision will rely on incoming economic information.
The backdrop for the Fed’s policy deliberations included the ongoing war involving the U.S., Israel, and Iran, which has pushed energy prices higher. On Wednesday, Bitcoin price fell in tandem with U.S. stocks following reports that Israel struck the South Pars gas field in Iran.
“Uncertainty about the economic outlook remains elevated,” the FOMC said. “The implications of developments in the Middle East for the U.S. economy are uncertain.”
Federal Reserve Chair Jerome Powell discussed the implications of rising energy prices at a press conference.
He said, “Near term measures of inflation expectations have risen in recent weeks, likely reflecting the substantial rise in oil prices caused by the supply disruptions in the Middle East.”
He added that it is “too soon to know” the full economic impact of the conflict and that policymakers would continue to monitor data closely.
Bitcoin price reacts to tariffs, rate expectations
Powell also highlighted the influence of tariffs on consumer prices, noting that “some big chunk of that, between a half and three-quarters, is actually tariffs.”
He described the current federal funds rate range as within neutral territory and emphasized the importance of central bank independence.
“Independence is what allows us to do our jobs, and stable prices is half of our mandate, it’s one of our two mandates – maximum em
