Fed Hawkish Shift Slams Markets, Crypto Under Pressure at Sixty-Four K

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Welcome to Stock Market Today, your market briefing with actionable insights on stocks, bonds, crypto and the events moving markets. Let's get into it. Fed Chair Kevin Warsh just threw markets a curve ball in his first FOMC decision. Rates held at 3.5 to 3.75% as expected, but the updated dot plot tells a different story.
Median rate projections for 2026 jumped to 3.8% from 3.4 in March. Nine of 18 officials now pencil in hikes this year, with markets pricing 60% odds of an October move. Bitcoin sitting at $64,300.
Ethereum at $1,748. Both assets under pressure as the dollar index approaches a breakout above 100.60. Bitcoin's negative 0.82 correlation with the greenback over 90 days means dollar strength is a headwind. Strategies Preferred Stock, STRC, hit a record low of $89, 11% below par, forcing the company to pause Bitcoin purchases. Strategies sold Bitcoin for the first time ever on June 1 to fund preferred dividends, 32 coins for $2.5 million. The company now holds 846,000 Bitcoin, but only $1.1 billion in cash reserves against $15.5 billion in preferred shares.
Kentucky just became the 18th state to sue prediction markets, Kalshi and Polymarket, arguing they're operating illegal sportsbooks. This could hit the Supreme Court within years.
Equities showed rotation out of magnificent seven tech stocks into semiconductors. Memory chip makers surged after Apple CEO Tim Cook said price hikes are unavoidable due to chip costs. Micron up 4.4 percent. Intel jumped after Trump announced its foundry will make chips for Apple domestically. Gasoline prices finally broke below $4 per gallon, $3, $99.90. Bond market flashing warnings. The 10-year, 2-year Treasury spread tightened to 28 basis points, tightest since April 2025, signaling the Fed's getting more hawkish. That wraps your Market Intel. Trade smart out there. For deeper insights and real-time analysis, visit capitalcopilot.io.