Bitcoin price reaction to Federal Reserve signals and US‑Iran diplomatic development
On 18 June 2026, Bitcoin slipped 1.2% to $64,337.6 at 09:26 ET (13:26 GMT) after the Federal Reserve’s policy meeting left the benchmark interest rate unchanged but revealed that an increasing number of policymakers were contemplating a rate hike later in 2026 amid persistent high inflation. New Fed Chair Kevin Warsh also indicated that the Fed would overhaul its communication strategy regarding interest‑rate policy, adding further uncertainty. CME FedWatch data showed market participants pricing in at least one 25‑basis‑point increase by the end of 2026, a development that typically reduces the attractiveness of speculative, risk‑driven assets such as cryptocurrencies.
US‑Iran peace framework and market sentiment
A separate development on the same day was the signing of a memorandum of understanding between the United States and Iran, aimed at ending hostilities and reopening key Middle‑East shipping lanes. While the agreement sparked a modest risk‑on rally in broader markets, investors continued to favour AI and chip‑making equities with solid fundamentals over more speculative assets, including metals and crypto. The limited enthusiasm for digital assets has contributed to continued outflows from crypto, particularly from spot exchange‑traded funds.
Ark Invest portfolio adjustments in the crypto space
Ark Invest disclosed that it purchased approximately $18.4 million of Coinbase Global shares, acquiring 111,799 shares across its ARK Innovation ETF, ARK Next Generation Internet ETF, and ARK Fintech Innovation ETF. The firm also added 236,759 Block shares valued at about $17.2 million to the ARK Innovation ETF, while reducing its holding in Robinhood Markets by 275,572 shares, a sale valued at roughly $29 million.
Altcoin performance
In line with Bitcoin’s decline, major altcoins also retreated. Ether fell 0.6% to $1,750.19, XRP dropped 2.6%, and Solana, Cardano and BNB each slipped between 1% and 3%. Among meme‑coins, Dogecoin and the $TRUMP token each shed about 1.7%.
Reporting details
The article was authored by Ambar Warrick and updated later on 18 June 2026. Vahid Karaahmetovic contributed to the report. All figures and statements are sourced from Reuters and Investing.com.