In the first Federal Open Market Committee meeting since President Donald Trump took office, the U.S. Federal Reserve has kept interest rates unchanged at 4.25% to 4.50%, further fueling uncertainty in the financial and cryptocurrency markets.
Continued Market Uncertainty
With no rate cut, traditional markets may remain volatile while affecting risk assets like Bitcoin and other leading altcoins. Investors may stay cautious while waiting for clearer signs of economic stability.
Strength of the U.S. Dollar
Higher interest rates tend to strengthen the U.S. dollar, which historically puts downward pressure on crypto markets. If the Fed maintains rates for longer, Bitcoin and other cryptocurrencies could struggle to gain momentum.
Institutional Investment May Slow Down
As institutional investors consider crypto a high-risk asset, the capital flows into crypto from traditional finance might slow down for the next few weeks.
While no rate cut may slow down short-term bullish sentiment, the long-term fundamentals of crypto remain strong. Now the macroeconomic developments will play a key role in moving the crypto market ahead in coming weeks.
