During the recent FOMC meeting, the decision to maintain the federal funds rate at 4.25%–4.50% triggered notable shifts in the cryptocurrency landscape.
Interest Rate Decision
At the meeting held on July 30, 2025, the FOMC leaders decided to keep the interest rates unchanged. This decision leaves the federal funds rate in the 4.25%-4.50% range, reflecting a data-dependent approach, as highlighted by Federal Reserve Chair Jerome Powell.
Crypto Market Reaction
The lack of rate change led to significant market volatility impacts on cryptocurrencies. In particular, altcoins experienced a total loss of $50 billion in value, while investor focus shifted towards the potential for Bitcoin to reach $130K.
Future Market Prospects
Despite the current market conditions, there are expectations that future rate cuts could boost interest in cryptocurrencies, similar to trends observed in the past. Investors express cautious optimism regarding Bitcoin and Ethereum, awaiting key changes in Fed policy.
By holding interest rates at current levels, the FOMC creates significant waves in the financial sector, affecting asset valuation and trader market strategies. Future expectations regarding changes in economic policy remain key drivers for activity in the cryptocurrency market.
