Federal Reserve's first Kevin Washi‑led FOMC triggers crypto slide and US stock sell‑off

The Federal Reserve’s inaugural policy meeting under new chair Kevin Washi kept the benchmark rate at 3.5‑3.75% but signaled a possible rate hike later this year. The more hawkish tone prompted a sharp rise in U.S. Treasury yields, a stronger dollar, and a broad retreat from risk assets.

Cryptocurrency markets reacted strongly: Bitcoin fell about 2.3% to around $64,200, Ethereum dropped 3.2% to $1,738, and most major altcoins posted losses. While a few tokens such as HyperLiquid showed short‑term gains, overall market sentiment moved into the “fear” zone on the alternative fear‑greed index.

U.S. equity markets also opened lower. The Dow Jones Industrial Average closed down 0.98% at 51,492, the S&P 500 slipped 1.21% to 7,420, and the Nasdaq Composite fell 1.35% to 26,022. Technology giants led the decline, with Meta, Amazon, Microsoft and Alphabet each down between 2% and 5%. Some semiconductor stocks held steadier positions, limiting the overall index drops. Bond yields rose, with the two‑year Treasury at 4.21% and the ten‑year at 4.47%, while the dollar index climbed to 100.45.