Bitcoin, Ethereum Wobble as Fed Holds Rates Steady
The Federal Reserve left rates unchanged at 3.5%–3.75%, matching expectations and marking a fifth straight hold since the December 2025 cut. Bitcoin fell about 1% to around $63,890 and Ethereum also slipped roughly 1% to just above $1,900. The decision came without new economic projections or a dot plot, leaving markets with little fresh guidance until the next update in September. Fed officials said growth remains solid but inflation is still above target, with rising Middle East tensions and higher oil prices adding pressure. Three regional Fed presidents dissented, favoring an immediate 25-basis-point hike, underscoring a hawkish split. Markets now see a September rate hike as possible, which could weigh on crypto because higher rates typically reduce risk appetite and support the dollar.
