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When The Fed Holds Interest Rates, Crypto Remains Stuck in the Gray Zone

The Federal Reserve's decision in the June 2025 FOMC to maintain interest rates at high levels (4.25%–4.50%) confirms one thing: the central bank of the United States is not ready to ease economic restrictions. For the crypto world, this is not bad news, but it is also far from good. The digital currency market, especially Bitcoin and altcoins, must again endure uncertainty in global monetary policy direction.

Crypto is a market that is very sensitive to liquidity. When high interest rates are maintained, capital tends to flow into safe and yield-bearing assets like bonds. Conversely, high-risk assets like crypto lose their appeal. In this context, the Fed's decision not only maintains the status quo but also extends the "fast" period for investors waiting for bullish catalysts in the form of interest rate cuts.

Signals from the FOMC dot-plot, which forecasts only one interest rate cut at the end of 2025, also worsen speculative sentiment. This implies that Bitcoin will not receive a boost from macroeconomic factors in the near term. Price consolidation is inevitable, with BTC stuck in a narrow range and altcoins tending to stagnate or weaken.

However, the market has not completely lost hope. If inflation data in the coming months shows consistent declines, expectations for interest rate cuts could resurface. And when that happens, crypto is likely to be one of the main beneficiaries, as was the case in early 2024.

In short, the Fed's decision to hold interest rates is not a hammer blow for crypto, but more like extending the wait time. This is the time for the market to be patient, catch its breath, and wait for the next big opportunity.