Crypto Markets Turn Defensive After Fed Holds Rates, Marex Says
Crypto prices weakened after the Federal Reserve kept rates steady while signaling concern about inflation. Marex analysts said positioning looked defensive and thin, with derivatives data showing risk-off behavior and demand for downside protection.
What happened?
Crypto prices weakened after the Federal Reserve kept rates steady while signaling concern about inflation. Marex analysts said positioning looked defensive and thin, with derivatives data showing risk-off behavior and demand for downside protection.
Why it matters
Crypto markets slipped after the Federal Reserve’s latest interest-rate meeting, as traders reacted to a hawkish tone from the U.S. central bank. Bitcoin traded near $63,900, down more than 1% over 24 hours, while major tokens including XRP, ether, BNB and solana also posted losses, according to CoinDesk.
Crypto markets slipped after the Federal Reserve’s latest interest-rate meeting, as traders reacted to a hawkish tone from the U.S. central bank. Bitcoin traded near $63,900, down more than 1% over 24 hours, while major tokens including XRP, ether, BNB and solana also posted losses, according to CoinDesk.
The move matters because expectations for higher U.S. interest rates can weigh on risk assets, including crypto. CoinDesk reported that the CoinDesk 20 Index fell more than 1.2%, while its DeFi Select Index dropped 5%, making decentralized finance one of the weaker segments in the session.
Marex analysts described market sentiment as washed out, saying positioning was “defensive” and conviction was thin. The analysts also noted that bitcoin was about 48% below its October high of $126,000, a backdrop they framed as potentially contrarian but still reflective of weak market confidence.
Derivatives data pointed to a risk-off setup. More than $440 million in crypto futures positions were liquidated across exchanges over 24 hours, with most of the losses coming from bullish long positions. Bitcoin futures open interest also pulled back from Tuesday’s high, while ether showed a similar pattern.
Options activity suggested traders were preparing for more short-term downside. Flows tracked by Laevitas showed increased demand for put options expiring June 21, while most of the top 25 tokens showed negative 24-hour cumulative volume delta, a sign of bearish pressure in spot markets. There were still pockets of strength, with Provenance Blockchain’s HASH token rising 15% and Stellar’s XLM gaining nearly 10%.