Bitcoin falls below $71,000, stocks close at lows: Hopes for rate cuts in 2026 fade

Bitcoin dropped below the key psychological level of $71,000 on Wednesday, while U.S. stock indices closed at session lows. The main trigger for the sell-off was statements by Jerome Powell, head of the Federal Reserve, who acknowledged that rising oil prices due to the conflict in Iran are already affecting inflation expectations, and that the duration of this effect remains uncertain.

Powell acknowledges the oil factor

At the press conference following the Fed meeting, Jerome Powell stated that the recent surge in energy prices has clearly influenced inflation forecasts. The committee raised its inflation outlook for 2026 from 2.4% to 2.7%.

At the same time, he rejected comparisons to 1970s-style stagflation, noting that unemployment remains close to long-term norms and inflation is only slightly above target. He indicated that the oil shock is already reflected in higher inflation projections and emphasized that it is still unclear how persistent this effect will be. He also stated that current conditions do not meet the criteria for stagflation, which would require much more severe economic circumstances.

Markets react with declines

Following Powell’s remarks, market sentiment turned more cautious.

• Bitcoin fell to $70,619, losing about 5% in a day
• Ethereum (ETH) dropped 5%
• S&P 500 and Nasdaq Composite closed down 4% and 1.5%, respectively, hitting session lows late in trading

Gold also continued to decline, falling below $4,850 per ounce (–3.1% for the day), marking its lowest level in over a month.

Crypto-related stocks were hit even harder:

• MicroStrategy and Bitmine fell 5–6%
• Galaxy Digital dropped nearly 7%
• Gemini plunged 15%, nearing post-IPO lows

ETF inflows continue, but pressure remains

Despite the overall decline, spot Bitcoin ETFs recorded $201.62 million in net inflows on March 16, marking the sixth consecutive day of positive flows. However, the technical outlook remains weak.

• The Ichimoku Kijun support level sits at $69,255, just below current prices
• Weekly indicators (MACD, ADX) suggest some underlying buying interest
• Intraday indicators (Stoch RSI, BBP) point to strong selling pressure and oversold conditions
• Awesome Oscillator remains neutral

In the coming days, analysts expect consolidation in the $69,000–$72,000 range with high volatility. The probability of a sustained upward move is currently estimated at below 20%, as sell signals dominate on higher timeframes.

Analyst Anton Kharitonov from Traders Union indicated that caution remains warranted, noting that unless the $71,400 level is clearly reclaimed, the risk of further downside remains high.

In brief

Bitcoin fell below $71,000, losing about 5% in a day, following comments from Jerome Powell about the impact of the oil shock on inflation. The Federal Reserve raised its 2026 inflation forecast to 2.7%, while rejecting stagflation comparisons.

The S&P 500 and Nasdaq Composite closed at session lows (–1.4% to –1.5%), and crypto-related stocks dropped by 5–15%.

Although Bitcoin ETFs continue to see inflows ($201 million on March 16), the technical outlook points to consolidation in the $69,000–$72,000 range, with downside risks still dominant.