Trump Signs US-Iran MoU; Fed Outlook Pushes Bitcoin Down

Donald Trump signed a 14-point Memorandum of Understanding with Iranian leaders intended to end active military operations and stabilize the region. Pakistan mediated the agreement with support from Qatar, Saudi Arabia and Turkey. The pact includes verification measures, partial sanctions relief and a schedule for technical talks on Iran’s nuclear program. Iranian President Masoud Pezeshkian was shown signing what officials called the Islamabad Memorandum. Trump described the pact as a diplomatic success.

The Federal Reserve on June 17 held the policy rate at 3.50%–3.75% for the fourth consecutive meeting. The Fed removed prior language that had suggested further easing and described policy as neutral and data dependent. Nine of 18 Federal Open Market Committee participants projected at least one rate increase in 2026.

Markets reacted to both developments. Bitcoin rose to about $66,315 after the MoU was announced, then reversed and traded near $64,339, down about 2.1% over 24 hours and closer to a seven-day low of $61,464 than to a weekly high of $67,203. The S&P 500 fell about 1.5%, the Nasdaq dropped roughly 2% and the Dow lost about 160 points. Two-year Treasury yields rose about 11 basis points to 4.153% and 10-year yields rose about 12 basis points to 4.469%. Oil and gold initially eased on the reduced geopolitical risk and later came under selling pressure.

A market observer wrote on social media: “I am watching the market today, and everyone is completely overreacting to the June 17th Fed meeting.” The observer added that retail traders had interpreted the Fed’s hold as a lasting policy change.

At publication, Bitcoin remained near $64,339 and financial markets were pricing a higher probability of future rate increases.