Market Reaction
Wednesday, February 18, 2026 — Cryptocurrency markets sold off sharply Wednesday afternoon following the release of the Federal Reserve’s January meeting minutes. Bitcoin dropped 2.38% to $66,452, while Ethereum fell 2.24% to $1,954 as traders digested the central bank’s cautious stance on monetary policy.
Broader Crypto Selloff
The decline wasn’t limited to major cryptocurrencies. Altcoins experienced deeper losses across the board:
- Solana (SOL): -4.42% to $81.41
- Cardano (ADA): -3.21% to $0.276
- Arbitrum (ARB): -4.96% to $0.109
- Stellar (XLM): -3.11% to $0.163
- Dogecoin (DOGE): -2.83% to $0.099
What the Fed Minutes Revealed
The FOMC minutes, released at 2:00 PM ET, showed Fed officials remain cautious about cutting interest rates too quickly. While the central bank acknowledged progress on inflation, the minutes emphasized the need for ‘greater confidence’ that price pressures are sustainably moving toward the 2% target before considering rate reductions.
Market expectations for a March rate cut have dropped significantly, with odds now at approximately 8% according to Fed funds futures, down from earlier projections.
Why Crypto Reacted
Risk assets including cryptocurrencies are particularly sensitive to Fed policy expectations. Higher interest rates for longer typically pressure speculative assets as investors can earn better returns in safer fixed-income investments. The prospect of delayed rate cuts removed a key catalyst that had been supporting crypto prices.
Bright Spots in Equities
While crypto declined, select stocks in the watchlist showed resilience:
- Rocket Lab (RKLB): +7.54% ahead of February 26 earnings
- Iris Energy (IREN): +4.98% on AI infrastructure momentum
- NVIDIA (NVDA): +2.01% continuing AI leadership
What to Watch
Near-term support levels: Bitcoin faces critical support around $65,000, with psychological support at $60,000. A break below these levels could trigger further selling.
Upcoming catalysts: Investors will be watching next week’s personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — for fresh signals on the rate outlook.
The Verdict
The Fed minutes served as a reality check for markets hoping for rapid rate cuts in 2026. While the long-term crypto narrative remains intact, short-term price action will likely remain choppy as investors adjust to a ‘higher for longer’ interest rate environment. Traders should watch the $65,000 level on Bitcoin closely — a sustained break below could open the door to deeper corrections.
— Freedom Portfolio Market Brief