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Crypto News

Federal Reserve interest rate remains unchanged – how will the encryption reaction be?

The US Federal Reserve has retained the interest rates steadily by 4.25 % – 4.50 % in FOMC on June 18, representing the fourth consecutive consecutive since December 2024.

The markets are widely expected this step. CME FEDWATCH data showed 99.9 % of the rate that is heading to the meeting. Cooling, flexible labor markets, and persistent prices for trade in decision constitute decision.

The interest rate in the Federal Reserve continues to thwart the American markets

Bitcoin held approximately $ 105,000 after the announcement, while ETHEREM was trading near $ 2,500. However, the broader encryption feelings may weaken as the Federal Reserve boosts a higher position than length.

Federal Reserve Bank Absolute Its updated summary of economic expectations and DOT conspiracy alongside the decision.

FOMC participants only expect Reducing one rate in 2025Lower two expected in March. Most of the politicians have maintained their 2025 expectations with the current levels, indicating that the most strict policy will continue for a longer period.

The point plot also showed a slow way to normalize:

  • in 2026The majority expects prices around it 3.25 % – 3.50 %.
  • by 2027The expectations are converging towards 2.75 % – 3.00 %Approaching the Federal Reserve in the long term.
  • the Long -range points Stay near 2.5 %This indicates any major shift in structural expectations.

This is a prominent shift. Only four participants expected any reduction in 2025, which confirms the Fed’s Reserve Bank’s warning amid enlarged adhesive services and price -based price risk.

The FOMC DOT conspiracy released in June 2025. Source: Federal Reserve

Less discounts this year means that the capital will remain expensive. This brings liquidity flows in speculative assets such as Altcoins and Defi symbols. The strongest account of the dollar also puts pressure on encryption reviews.

Bitcoin’s dominance can rise in the short term, as founding traders abolish the risks from Altcoins and light in high -quality assets. At the same time, attention may grow in yield generation products such as ETH Staped or the American Treasury Code.

Unless economic data increases or inflated inflation sharply, it is unlikely to see encryption markets in the upward direction of the federal reserve policy in the short term.

The Federal Reserve increased in July 2023. Since then, inflation has fell steadily from 5.3 % to 2.4 % as of June, which has approached the goal of the Federal Reserve by 2 %. But the inflation of services and costs related to tariffs are still sticky.

The encryption markets are particularly sensitive to FED signs. Low rates are usually enhanced by liquidity and delicious risk, pushing the capital to Bitcoin, Etherum, and Altcoins.

On the contrary, the high environment is the rate of reducing upward potential.

With economic concerns about heating due to Iran and Israel’s conflict, price policy has also become a political issue. Donald Trump publicly pressed the federal reserve to reduce faster, while current policy makers remain careful.

Looking at the future, the FOMC meeting will stop on July 31 on inflation and job data in June. Currently, encryption dealers will dissect each Powell word for guidelines about the timing of the Federal Reserve – and tolerance with market fluctuations.

Disintegration

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