Bitcoin slipped almost 1% after the Federal Reserve voted unanimously to keep the federal funds rate in the 3.50%‑3.75% range during Kevin Warsh’s first policy meeting as chair.
Federal Reserve’s Rate Announcement
The Federal Open Market Committee recorded a 12‑to‑0 vote to maintain the target range at 3.50%‑3.75% and reiterated its commitment to provide ample reserves for banks. The statement highlighted solid expansion in economic activity despite heightened uncertainty from geopolitical tensions, especially in the Middle East. It also noted that inflation remains above the 2% goal, with price pressures partly driven by supply‑chain shocks affecting sectors such as energy.
Crypto Market Reaction
Bitcoin’s modest decline extended earlier weakness, while investors across the crypto space adopted a cautious stance. The broader market, including major indices like the S&P 500 and Nasdaq, fell roughly 1% as traders awaited further commentary from Warsh. Analysts suggest that the Fed’s emphasis on price stability will keep pressure on crypto assets until clearer inflation trends emerge.