Bitcoin drops, reverses recent gains

The cryptocurrency dropped 1.9% to $62,995.6

Bitcoin slid on Thursday, reversing a bulk of recent gains after hawkish signals from the U.S. central bank saw the country’s markets ratchet up expectations for an interest rate hike this year.

Bitcoin dropped 1.9% to $62,995.6 by 21:19 GMT.

Bitcoin had tumbled in overnight trade after the U.S. central bank left interest rates steady, as expected.

But the central bank meeting showed an increasing number of policymakers considering an interest rate hike later in 2026, amid risks from high inflation.

New central bank Chair Kevin Warsh also signalled an overhaul in how the bank would communicate its plans for interest rates, sparking more uncertainty in markets.

Investors were seen pricing in at least one 25 basis point hike by end-2026, CME Fedwatch showed.

High rates bode poorly for speculative, risk-driven assets like crypto, given that they diminish the appeal of investing in the sector over safer plays like debt.

Iranian President Masoud Pezeshkian posted an image of the signed MoU from Tehran’s side on social media, calling it a “historical document” and the result of “national resilience, political rationale, and responsible diplomacy.”

As per the text posted by Iran, the MoU ends operations on all fronts and starts a 60 day period for further negotiations to arrive at a final deal.

Crucially, the MoU would reopen the Strait of Hormuz without any tolls or charges for the 60 days.

Elsewhere, Cathie Wood’s Ark Invest bought around $18.4 million of Coinbase shares on Wednesday. The firm picked up 111,799 Coinbase shares across three of its exchange-traded funds — ARK Innovation ETF, ARK Next Generation Internet ETF and ARK Fintech Innovation ETF — according to its daily trading disclosure.

ARK Innovation ETF also added 236,759 shares of Block, worth around $17.2 million, while cutting its Robinhood Markets position by 275,572 shares, a sale valued at close to $29 million.