#FedWatch Bitcoin Shrugs as Fed Projects Two Rate Cuts in 2025, Holds Rates Steady$BTC $ETH

The U.S. central bank’s “dot plot” forecast the same number of rate cuts as it did in December.

The Federal Reserve held interest rates steady on Wednesday, prolonging a months-long pause on rate cuts amid economic uncertainty fueled by U.S. President Donald Trump’s tariffs.

The price of Bitcoin and other cryptocurrencies, which rose on Wednesday morning, was roughly flat immediately after the central bank stood pat for a third consecutive time but was still up 4% over the past 24 hours to trade at about $84,500, according to data provider CoinGecko.

The U.S. central bank’s decision was widely expected, leaving its benchmark rate at 4.25% to 4.50% after the Fed began slashing borrowing costs in the final quarter of last year.

In a statement, the Fed emphasized a wait-and-see approach on how Trump’s policy maneuvers—which have battered stocks and crypto—could draw out its inflation fight.

“Uncertainty around the economic outlook has increased.,” the Fed said. “The Committee will continue to monitor the implications of incoming information for the economic outlook.”

An updated forecast weighing expectations from 19 Fed officials showed two rate cuts this year, effectively matching policymakers’ outlook in December. The Fed’s previous projections had poured cold water on risk assets, as Fed officials had previously penciled in four rate cuts.

In December, however, one Fed official foresaw as many as five rate cuts this year, or a reduction of 1.5% in the Fed’s benchmark rate. On Wednesday, no fed official envisioned more than three rate cuts this year, suggesting a firmer policy outlook.

The president’s approach to tariffs has sparked inflation concerns, but some fear that it may also hamstring U.S. economic growth as consumers and businesses face elevated costs.

The prices of Ethereum and Solana dipped in the hour but are up 7.7% to $2000, and 5% to $129.50, respectively.