Bitcoin and Ethereum Dip as Fed Maintains Interest Rates
The Federal Reserve kept interest rates unchanged at 3.5%–3.75%, aligning with market expectations, but crypto markets still saw a slight decline. Bitcoin fell about 1% to $63,890 while Ethereum dropped around the same amount to just above $1,900. This marks five consecutive rate holds since December 2025 when rates were last cut by 25 basis points under former Chair Jerome Powell. The Fed's decision lacked a Summary of Economic Projections and forward guidance, leaving markets with fewer signals about future moves until September. The central bank noted solid economic growth but persistent inflation above its target due in part to rising energy prices from the Middle East conflict. Three regional Fed presidents dissented by supporting an immediate rate hike. Higher oil prices have kept upward pressure on inflation and left a potential for a September rate increase, which could impact risk assets like crypto negatively.
Topics: Bitcoin Ethereum Federal Reserve inflation interest rates