Macro Selloff Tests Risk Appetite as Crypto Holds Firm

The Federal Reserve decided to hold interest rates steady at 3.5%, 3.75%, sparking a market reaction that saw the Dow fall by roughly 1,150 points and the VIX spike 13.45% to 20.66.

The central bank's decision was met with a divided FOMC split of 9-3, with policymakers voting to pause, citing concerns over inflation tied to geopolitical disruption.

Crypto markets held relatively steady in the face of this macroeconomic shock, with Bitcoin trading around $64,036 and Etherum at $1,906. However, Solana fell further, down 5.21% week-over-week despite marginal daily gains.

Fed Chair Kevin Warsh signaled that the central bank has 'no tolerance' for elevated inflation, warning that five-plus years of above-target price growth cannot be cured in nine weeks.