Fed has prices stable, bitcoin profits when the market reacts
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Fed has prices stable, bitcoin profits when the market reacts

Fed keeps interest Prices by 4.25%-4.50%, increases BitcoinSolana and XRP, while altcoins can fight without clear signs of future liquidity expansion.

The Federal Reserve kept interest rates stable at 4.25%-4.50%Signaling of caution to facilitate monetary policy. While stable prices usually slow down investments in high -risk assets saw large cryptocorate a small boost, with Bitcoin, Solana and XRP rise about 2% after the announcement.

This decision follows three interest rate cuts at the end of 2024, but proposes that decision makers are not yet ready for further reductions. The Fed’s attitude means that capital will not flow quickly into speculative markets, but a break in increases is generally positive for risk resources, including crypto. When interest rates remain high, traditional investments remain as bonds attractive and keep investors careful with risky investments. But if prices remain stable or eventually decrease, crypto can benefit from increased liquidity.

Market reactions were mixed. Some analysts see this as a “Hawkish break”Which indicates that the economy is sufficiently stable to avoid aggressive sharpening. This environment can support crypto markets, which rely on liquidity and investors’ confidence.

Although they kept interest rates unchanged, the Fed removed references to progress against its 2% inflation target, which indicates that further cuts will not come soon. But strong employment numbers and stable economic growth reduce the fear of a recession and supports speculative assets such as bitcoin.

President Trump had urged the Fed to continue to lower interest rates, but decision makers decided to have their current position. The crypto market will now look at all signs of future liquidity expansion. Until then, Altcoins can fight compared to Bitcoin, which remains the safer alternative because of its strong institutional support and macroeconomic resilience.