The Federal Reserve maintained interest rates unchanged, prompting a modest decline in Bitcoin and Ethereum prices amid limited forward guidance.
The Federal Reserve kept its benchmark interest rate steady at 3.5%–3.75% on Wednesday, aligning with widespread market expectations. The decision marks the fifth consecutive hold since a 25 basis point cut in December 2025, under former Chair Jerome Powell, before Kevin Warsh took over as Fed chair.
Bitcoin and Ethereum both edged lower following the announcement, with Bitcoin falling about 1% to $63,890 and Ethereum slipping to just above $1,900. The Fed’s decision lacked updated rate projections, as the next dot plot is not due until September, leaving markets with little new guidance.
The Fed noted solid economic expansion but acknowledged inflation remains above its 2% target. With no fresh signals on future policy, crypto and equity markets reacted cautiously, while equities faced additional pressure from geopolitical developments.