Crypto and broader equities fell sharply Wednesday as traders attempted to divine next year’s outlook following a hawkish pivot from the U.S. central bank.

While the 25 basis point cut delivered by the Federal Reserve on Wednesday was largely priced in, concerns flared as the bank signaled interest rates may not go down again anytime soon.

During a press conference, Fed Chair Jerome Powell told reporters that while inflation was “steadily” receding, recent high readings indicated it had been “slower than hoped.”

The Fed’s updated “dot plot” for 2025 has signaled a shift in policy expectations, with officials now projecting two rate cuts—equivalent