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Bitcoin's price remained largely unchanged following the Federal Reserve's decision to keep interest rates steady within their target range of 4.25% to 4.5%. The cryptocurrency was trading at approximately $104,000, reflecting a muted response to the Fed's announcement. This stability in Bitcoin's price was mirrored by other major cryptocurrencies, with Ethereum (ETH) seeing a slight increase of 0.7% to $2,488, XRP holding steady at $2.15, and Solana (SOL) experiencing a minor decline of nearly 1% to $145.
The Federal Reserve's decision to maintain interest rates was widely anticipated, with market analysts and betting platforms overwhelmingly predicting no change in rates. The Fed's stance was influenced by a stable yet pressured economic landscape, characterized by inflation at 2.4% in May 2025 and an unemployment rate of 4.2%. The Summary of Economic Projections, released alongside the rate decision, provided critical insights into the Fed’s outlook, potentially influencing market sentiment.
The cryptocurrency market, known for its volatility, was particularly sensitive to the Fed's decision. Bitcoin's price hovered near the $105,000 mark, risking a significant pullback to $100,000 if the Fed had signaled a hawkish stance or delayed rate cuts. Ethereum slipped below $2,500, reflecting caution among investors, while XRP faced additional pressure due to the ongoing Ripple-SEC case. Analysts suggested that a dovish hint from Fed Chair Jerome Powell could spur capital flows into altcoins, potentially pushing XRP toward $3 and Ethereum above $2,600. Conversely, a hawkish policy could trigger larger sell-offs and extend current losses.
The Fed's decision was further complicated by rising oil prices, which some argued may necessitate rate hikes rather than cuts. Powell's cautious approach, rooted in his tenure since 2018 and past quantitative easing policies, suggested a focus on inflation control over stimulus. Market reactions were expected to be stiff, with traders anticipating sharp movements in both traditional and digital assets post-announcement.
The Fed's decision to keep interest rates unchanged marked the fourth consecutive meeting with no rate change. This stability in monetary policy provided a sense of predictability for financial markets, including the cryptocurrency sector. The Fed's signal of two potential rate cuts later in the year added an element of uncertainty, as market participants awaited further guidance on the economic outlook. The decision to maintain rates reflected the Fed's commitment to balancing inflation control with economic growth, a delicate task in the face of rising oil prices and geopolitical tensions.

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