Fed's Hawkish Outlook Triggers Crypto Market Drop

The Federal Reserve left interest rates unchanged, causing a broad sell-off in the cryptocurrency market, with Bitcoin and Ether dropping over 3% and 5%, respectively. The Fed's Summary of Economic Projections suggests two more rate hikes in 2023, with interest rates peaking at 5.6%. Lower inflation likely drove the Fed's decision to hold rates steady. In DeFi, UNI rallied nearly 3% after Uniswap Labs released code for a fourth iteration of the exchange, while CRV dropped over 12% due to concerns about the founder's large leveraged CRV position on Aave. APE, the token for Bored Apes and other Yuga Labs NFTs, hit an all-time low of $2.05.