Fed Holds Rates Steady as BTC, ETH Prices Wobble

The Federal Reserve kept interest rates steady at 3.5%-3.75% on Wednesday, meeting market expectations and leaving crypto markets to respond cautiously.

BTC dipped around 1% to $63,890 following the announcement, while Ethereum fell by about 1%, now trading for just above $1,900.

This is the fifth consecutive hold since the committee cut rates by 25 basis points in December 2025. Since then, rates haven't moved, and neither has Kevin Warsh's communication style, which focuses on less 'forward guidance' than his predecessors.

The economy is expanding at a solid pace, but inflation remains above its 2% target due to rising energy prices caused by the situation in the Middle East. This could lead to a rate hike before year-end, with nearly half of FOMC members signaling support for it in June.