The price of bitcoin and other digital assets tumbled after the U.S. Federal Reserve announced that additional interest rate hikes were on the way, after pausing at Wednesday's meeting.
Over the last 24 hours, bitcoin has slipped putting the largest cryptocurrency asset to around the $25,000 level after it peaked at a 10-month-high above $30,000 in April.
In March, market participants had highlighted expectations for policymakers to begin pausing rate hikes or even cutting, as FOX Business reported, now that scenario has shifted pressuring cryptos.
Other cryptocurrencies are also down with Ethereum, the second-biggest coin, retreating 6.4%.
The Fed held interest rates steady for the first time in 15 months, pausing its aggressive tightening campaign to assess how the economy is faring in the face of higher borrowing costs.
The widely expected and unanimous decision left interest rates at a range of 5% to 5.25%, the highest level since 2007. But policymakers also left the door open to additional rate increases this year.
WASHINGTON, DC - MARCH 07: Federal Reserve Chair Jerome Powell arrives for testimony before the Senate Banking Committee March 7, 2023 in Washington, DC. Powell spoke on the state of the U.S. economy and suggested that interest rates will need to sta ((Photo by Win McNamee/Getty Images) / Getty Images)
"Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy," the Federal Open Market Committee said in a post-meeting statement. The Fed's next meeting is set for July 25-26.
New economic projections laid out after the meeting show that most Fed officials who participated in the meeting expect rates to rise to 5.6% by the end of 2023, suggesting two more quarter-point increases this year.
FOX Business reporter Megan Henney contributed to this report.