Crypto markets generate $100 billion amid hawkish Fed projections

Crypto markets have erased recent gains due to hawkish sentiment from the US central bank.

Total market capitalization declined by nearly $100 billion in less than 24 hours before and after Wednesday’s Federal Reserve meeting. The measure now sits at about $2.52 trillion, after falling Wednesday to just below a six-week high of $2.61 trillion.

Over the past 24 hours, approximately 136,000 traders have been wiped out, with total liquidations amounting to $452 million. The majority, about 85% of them, had long positions in Bitcoin.

The sharp squeeze sent markets back to the middle of their six-week range channel, erasing most of the gains from the recent rally.

Belligerent Fed shakes traders

The rate slide began before the meeting but continued after Fed Chairman Jerome Powell’s comments that there may only be one rate cut this year. The US central bank kept rates between 3.5% and 3.75%, a decision widely expected yesterday.

Fed policymakers maintained their forecast of another rate cut this year, but Powell suggested the central bank remained concerned about stubbornly high inflation even before the conflict’s impact on fuel prices, the Associated Press reported.

“The rate forecast is conditional on the performance of the economy, so if we don’t see progress, then you won’t see a rate reduction,” Powell said.

“FOMC events act as catalysts for volatility, but their impact depends on the underlying risk regime,” Swissblock said on Thursday, adding: “In high-risk environments, FOMC days tend to trigger a rejection or accelerate the decline.”

Rate decisions tend to “amplify the existing regime,” they added, explaining that the current regime “is transitioning to low risk, but is not yet fully confirmed.”

“This means that the FOMC can still trigger volatility, but ultimately Bitcoin depends more on its own internal strength, flow, and momentum than on macroeconomic events alone.”

FOMC events act as catalysts for volatility, but their impact depends on the underlying risk regime.

In high-risk environments, FOMC days tend to trigger a rejection or accelerate the decline.

In stabilizing regimes, they often mark local low points or continuation points.

The last three… pic.twitter.com/uWnVkjpHm4

-Swissblock (@swissblock__) March 18, 2026

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President Donald Trump has repeatedly called on Powell to cut rates “too slowly,” but his own actions have had the opposite effect. Trump’s tariffs and now the war in Iran have caused prices to rise, which should lead to a rise in inflation figures.

Inflation is one of the Fed’s two mandates for rate policy decisions; the other is the labor market.

Crypto Market Outlook

Bitcoin is down 4.3% on the day, falling below $71,000 on Wednesday, where it is currently struggling.

Ether prices fell 5.6% and fell below $2,200 while struggling to regain that level. Meanwhile, altcoins were bleeding profusely with larger losses for Dogecoin, Cardano, Chainlink and Zcash.

“For now, traders expect a bullish rebound despite no changes,” Santiment reported. “This is likely because the bearish price action from the lack of discounts already happened yesterday.”