Fed Keeps Rates Steady, Crypto Markets Wait for Next Rate Hike

The Federal Reserve has kept interest rates steady at 3.5%-3.75% for August, removing one major risk from the market but failing to provide a much-needed boost to crypto markets.

This dovish but cautious outlook for the year is expected to impact Bitcoin, Ethereum, and altcoins in August, with inflation, jobs, treasury yields, dollar strength, ETF flows, and the timing of the next rate hike being key factors.

The decision reflects a dilemma faced by policymakers, who are hesitant to raise rates due to fears that it will derail fragile economic growth but also unable to cut rates as long as inflation remains above 2%.