The U.S. Federal Reserve's decision to maintain interest rates at the June 2025 level has renewed interest in how macroeconomic policy affects the crypto markets, particularly Bitcoin.
The Fed and Economic Policy
The Fed decided not to cut interest rates despite analysts' expectations for a reduction. This may indicate stabilizing inflation and the absence of a need for tightening monetary policy. By holding rates between 4.25% and 4.50%, the Fed is creating conditions for increased capital flow into stocks and cryptocurrencies.
Crypto Market Reaction to the Fed's Decision
Markets remain tense due to Fed Chair Jerome Powell's cautious tone, which keeps rate cut expectations in check. Bitcoin showed stability in early trading hours but then experienced a sell-off. The effect of the Fed's decision may lead to increased interest in alternative stores of value.
Bitcoin Price Outlook
Traders are closely watching micro-signals in Fed projections, with expectations locked in for no changes. Bitcoin remains in an indecisive position following the Fed's tone, with bulls eyeing institutional movements and bears highlighting short-term volatility. Key support levels at $102K and $104K are crucial, as holding could set up a sharp recovery.
The situation in the crypto market remains pressured, and the Fed's decision to keep rates unchanged can signal both bullish and bearish trends, depending on future macroeconomic indicators.
