On May 7, 2025, the Federal Open Market Committee (FOMC) announced that it would maintain the federal funds rate at 4.25% to 4.50% for the third consecutive meeting. This decision reflects the Fed's cautious approach amid ongoing economic uncertainties, including the potential impacts of recent tariff policies and persistent inflationary pressures .
The crypto market responded with heightened volatility. Bitcoin (#BTC) experienced a slight dip of 0.1% to $94,219, while Ethereum (#ETH) and #XRP saw declines of 0.7% and 2.7%, respectively, on the day preceding the announcement . Analysts attribute this to a "wait-and-see" sentiment among investors, who are closely monitoring the Fed's stance for future rate changes.
