Bitcoin Falls to $75,700 as Fed Shifts Inflation Language; Morgan Stanley Revises 2027 Rate Cut Forecast

According to the Federal Reserve's latest decision yesterday (April 29), the Fed kept interest rates unchanged but shifted its inflation language from "somewhat high" to "high," signaling that interest rate cuts expected later this year may be delayed. Fed Chair Jerome Powell noted that rising energy prices will create upward pressure on inflation in the short term.

Bitcoin fell 1.7% to around $75,700, while Ethereum dropped 3.4% to $2,240. The broader cryptocurrency market capitalization declined 1.6% to $2.53 trillion. In response, Morgan Stanley revised its forecast, now expecting the Fed to hold rates steady through end-2026 and make 25 basis point cuts in January and March 2027, shifting from its previous prediction of cuts in September and December 2026.