#BinanceCrypto
Fed Keeps Interest Rates Steady – What Signals for the Crypto Market?
On January 29, 2025, the Federal Reserve (Fed) decided to maintain the interest rate at 4.25%–4.50%. The Fed noted that inflation is progressing but remains high, and the US economy is still growing steadily. It is expected that in 2025 there may be 1–2 rate cuts if conditions are favorable.
Impact on the cryptocurrency market:
Short term: Keeping interest rates high causes capital to tend to leave riskier assets like crypto, putting pressure on price adjustments.
Medium term: If the Fed begins to cut interest rates by the end of the year, increased liquidity could help the digital currency market recover strongly.
Market sentiment: The Fed's decision not to continue raising interest rates helps stabilize investor sentiment, creating a foundation for price increase expectations in the near future.
Conclusion:
The Fed's decision has not created an immediate impact, but it is a positive stepping stone for crypto if monetary policy loosens in the near future.