#FedHODL

Fed Keeps Rates Steady, but It Might Not Be Negative for Cryptocurrencies

The Federal Reserve left its benchmark interest rate unchanged at 4.25%-4.50% on Wednesday. This signals a “hard pause” as inflation remains elevated and economic activity grows at a steady pace.

The decision follows three consecutive rate cuts in late 2024, but suggests that policymakers remain cautious about early monetary easing.

Steady Rates Likely to Be Positive for Cryptocurrencies

There was no major market movement following the announcement. Static rates are typically bearish for the crypto market. The Fed’s stance suggests that capital will not flow into riskier assets quickly.

However, major cryptocurrencies saw a slight uptick. Bitcoin, Solana, and XRP were up nearly 2% in the hour following the news.