#FOMCMeeting

The Federal Reserve's decision on May 7, 2025, to maintain interest rates at 4.25%–4.50% has significantly influenced the cryptocurrency market, particularly Bitcoin and Ethereum.

Bitcoin (BTC): Following the FOMC announcement, Bitcoin's price surged past $100,000 for the first time since February, reaching an intraday high of $103,978. This rally is attributed to renewed investor optimism in digital assets, bolstered by recent trade developments and expectations of potential rate cuts later in the year .

Ethereum (ETH): Ethereum also experienced significant gains, with its price increasing by over 24% to $2,381. The broader crypto market's positive response is further supported by substantial inflows into spot Bitcoin ETFs, indicating strong institutional interest .

Market Outlook: Analysts suggest that the Fed's cautious stance, coupled with the possibility of future rate cuts, could continue to favor risk assets like cryptocurrencies. However, they also warn of potential volatility, especially if inflationary pressures persist or if trade negotiations falter .

In summary, the Fed's decision to hold rates steady has provided a short-term boost to the crypto market, with Bitcoin and Ethereum leading the charge. Investors are advised to monitor upcoming economic indicators and Fed communications closely, as these will likely influence future market movements.