The Fed’s rate pause stirred muted Bitcoin reactions but sparked volatility in altcoins like Tron and Solana amid policy speculation.
The GENIUS Act boosts stablecoin trust, favoring USDC and Ethereum, but sparks concern over political influence in crypto regulation.
Massive federal spending plans reignite Bitcoin’s hedge appeal as investors eye decentralized assets amid deficit and inflation fears.
As per Santiment platform report, US economic policy decisions continue to send ripples through the crypto markets in 2025. Recent developments involving interest rates, stablecoin regulation, and fiscal spending have triggered mixed investor sentiment. While Bitcoin and Ethereum held steady after the Federal Reserve’s decision to pause rate changes, altcoins like Solana and Tron showed sharper movements. Meanwhile, the GENIUS Act and the Big Beautiful Bill shaping new investor narratives.
Fed’s Rate Pause Brings Mixed Reactions
On June 18, the Federal Reserve chose to keep interest rates steady between 4.25% and 4.50%. While not unexpected, the move disappointed traders hoping for rate cut signals. Consequently, Bitcoin and Ethereum reacted quietly. However, expectations for future changes remain high, particularly among altcoins tied to speculative trading.
Tron and Solana, for instance, exhibited sharper intraday movements as speculation rose about looser monetary policy later in 2025. Trump’s vocal criticism of Powell added more attention to the Fed’s cautious stance. Hence, the market remains highly reactive to both policy signals and political commentary.
GENIUS Act Pushes Stablecoins Into Spotlight
The Senate passed the GENIUS Act on June 17. It introduces clear rules for stablecoins like USDC and USDT. This bill boosts investor confidence in federally backed crypto regulations. Circle’s stock gained sharply after the news, while Coinbase also saw a 17% surge, thanks to its deep stablecoin ties.
Ethereum gained modestly, as most stablecoins rely on its network. Additionally, Santiment’s social metrics show more bullish sentiment around the bill than bearish. However, some users worry the bill favors politically connected projects. Consequently, debates around fairness and influence are heating up.
Big Beautiful Bill Renews Bitcoin Hedge Narrative
The One Big Beautiful Bill Act has also stirred market discussions. It promises massive federal spending across multiple sectors. However, critics warn it could deepen the national deficit. Hence, Bitcoin's inflation hedge narrative is back in focus. Investors are seeking decentralized assets to shield against potential currency devaluation.
Moreover, tokens like Monero and MakerDAO have seen a rise in interest. Politically-themed meme coins are also trending, though largely from speculative buzz. If crypto-specific regulations enter the final bill, it could simplify taxation and spark wider adoption.
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