Crypto slips after Warsh FOMC, Trump Iran remarks

Cryptocurrency markets declined following the Federal Reserve’s policy meeting led by Chair Kevin Warsh and comments from former President Donald Trump on a US-Iran memorandum of understanding. Bitcoin’s price pressure coincided with $2.1 billion in net outflows from US-listed spot Bitcoin ETFs for June and a persistent Coinbase USD price discount versus international USDT pairs.

The Federal Open Market Committee left interest rates unchanged at its meeting on Wednesday. Investors examined Warsh’s comments for clues on the timing of potential rate cuts. US retail sales for May rose 6.9% year-over-year, a gain that market participants attributed to higher consumer prices rather than stronger demand. Five-year US Treasury yields were around 4.16%, a level market participants linked to reduced confidence that the Fed will cut rates soon.

Trump described the Iran memorandum as not final and indicated a formal signing was expected on Friday, which would start a 60-day negotiation window. He said the pact “should please the markets” and that oil prices might fall, and he warned he would order further bombings if Iran did not ‘behave’. US equities moved lower after the remarks, with the Nasdaq-100 trading roughly 2% below its record high.

Brent crude oil fell to its lowest level in about 100 days. Traders cautioned the decline could reverse if geopolitical risks resumed. Market participants noted that uncertainty over oil flows through the Strait of Hormuz, combined with higher consumer prices, was adding to inflation concerns.

Bitcoin has traded below $80,000 since mid-May. Market participants identified weak institutional demand as a factor in the price weakness. US-listed spot Bitcoin ETFs saw $2.1 billion in net outflows in June. Exchange price signals showed muted domestic demand: Coinbase’s USD Bitcoin price traded at a discount relative to exchanges that use USDT for several weeks, removing the typical domestic premium that can accompany strong US-based ETF or institutional buying.

Shares of Strategy’s preferred perpetual equity Stretch (STRC US) fell this week, reflecting investor concern about the company’s monthly dividend obligations and potential dilution. STRC carries an 11.5% yield and the vehicle can issue new preferred shares only at a fixed $100 price. Strategy faces about $142 million in monthly cash dividend payments, holds roughly $1.1 billion in USD cash reserves and has preferred shares outstanding totaling about $15.5 billion. Analysts and investors pointed to those figures as creating pressure to either issue additional preferred shares or draw on cash reserves. There is no evidence that Strategy must sell any Bitcoin holdings at present.

Market participants said upcoming drivers to watch include further comments from Warsh and the Fed, incoming US economic data, ongoing ETF flows and whether the US-Iran memorandum is formally signed and moves into its negotiation period.