#FOMCMeeting #BTC #dolar #USDC #MundoCripto
Recent FOMC (Fed) decisions on interest rates
Headquarters of the Federal Reserve in Washington, where the FOMC sets monetary policy. In the early May 2025 meeting, the Fed maintained the basic interest rate between 4.25% and 4.50% per year. The official statement emphasized that inflation is still above the 2% target and the labor market remains strong, which is why the central bank did not change monetary policy until clear signs of improvement are seen. Officials explained that they are waiting for a sustained decrease in inflation towards the target or a cooling in the labor market before cutting rates. Powell, the Fed Chair, stated that he wants to be 'sure' that temporary price increases (such as those caused by import tariffs) do not become a lasting inflation problem. This stance suggests that the Fed will prioritize keeping prices under control even if the economy shows signs of cooling. Currently, investors project that rate cuts will only occur later – possibly from the middle or end of 2025, depending on how inflation and employment evolve.
Impact on the cryptocurrency market
Bitcoin, the most traded cryptocurrency. Monetary policy decisions directly affect the cryptocurrency market because they influence investment return expectations. High interest rates in the US make safe investments (like Treasury bonds) more attractive, reducing the willingness to take risks in volatile assets like Bitcoin and Ethereum. Therefore, it is common to see drops in the price of crypto assets when the Fed signals a maintenance of high rates. For example, in early May, Bitcoin fell nearly 6% before the Fed announcement, as investors pulled money out of the crypto market in anticipation of the decision. Conversely, analysts point out that a clear signal of rate cuts or another stimulus measure would be a trigger for crypto prices to rise. In summary: if the Fed indicates a reduction in rates in the future, the appetite for risk assets increases, benefiting Bitcoin and Ethereum; if it maintains high rates, it tends to limit the gains of these assets. This relationship exists because lower rates weaken the dollar and lead investors to seek higher returns in alternative investments, while high rates strengthen the dollar and attract capital to traditional investments.
