- Top cryptocurrencies, including Bitcoin, Ethereum, and XRP, remained mum in the past 24 hours following the FOMC’s decision on interest rates.
- The Federal Reserve kept interest rates steady at 4.25%-4.50% for the fourth consecutive time.
- The pause comes amid President Trump’s push for rate cuts, throwing fresh jabs at Fed Chair Jerome Powell.
Bitcoin (BTC) and altcoins, including Ethereum (ETH), XRP, and Solana (SOL), saw slight movements on Wednesday as the crypto market stayed resilient following the Federal Reserve’s (Fed) decision to leave rates unchanged at 4.25%-4.50%.
Crypto market holds steady following Fed’s economic outlook
The US Federal Reserve held interest rates steady at 4.25%–4.50% during its June policy meeting on Wednesday, meeting market expectations.
Policymakers noted that the Committee will maintain plans to achieve maximum employment and lower inflation to its long-term target of 2%.
The Fed also indicated that the Committee is prepared to adjust its monetary policy stance as needed if emerging risks threaten progress toward its economic objectives.
Alongside its benchmark rate decision, the Fed also released its quarterly economic projections. This includes the dot plot, which outlines policymakers’ rate forecasts, showing that officials still expect at least two rate cuts totaling 50 basis points by the end of the year, in line with the outlook in March.
However, the Fed now projects rates falling to 3.6% in 2026 and 3.4% in 2027, signaling a slower pace of rate cuts than previously anticipated. During his speech, Fed Chair Jerome Powell stated that policymakers are eager to maintain their wait-and-see approach before considering a rate cut.
He shared that the labor market isn’t showing signs of weakness that would justify a rate cut, claiming the US has led the way in its interpretation and assessment of economic conditions.
Powell also added that he doesn’t expect any signs of economic slowdown in the near future.
“The US economy has defied all kinds of forecasts for it to weaken, really over the last three years and it’s been remarkable to see,” he said during his speech.
This marks the 4th straight meeting where the Fed has decided to leave rates unchanged, according to The Kobeissi Letter. It also comes as President Donald Trump increasingly demanded that policymakers cut rates and labeled Fed Chair Jerome Powell as “too late Powell.”
Trump hit Powell with a fresh jab on Wednesday, accusing him of not being a “smart guy.”
The crypto market held steady following the development, with Bitcoin rising briefly above $104,800 as altcoins Ethereum, Solana, and XRP erased previous losses, gaining 1%, 1%, and 0.5%, respectively, in the past 24 hours.
Despite the resilience of top assets, several sectors of the crypto market were hit following the Fed’s decision. The meme category experienced losses of 2.7% over the past 24 hours, with its weekly declines extending to more than 15%,
Likewise, the artificial intelligence sector and real-world asset (RWA) sectors both witnessed declines of 4.8% and 3%, respectively, following the announcement.
