FameEX Hot Topics | Bitcoin Stable Following Fed’s Rate Decision

The U.S. Federal Reserve opted once again to leave interest rates unchanged, maintaining the federal funds rate at 4.25%–4.50% for the fourth consecutive meeting. This move, widely anticipated by financial markets, reflects ongoing concerns about inflation and persistent uncertainty surrounding the direction of the U.S. economy. While traditional equities reacted positively—S&P 500, Nasdaq, and Dow Jones each recorded gains—Bitcoin remained largely unaffected, trading in a narrow range and showing minimal volatility in response to the announcement.

The Fed’s decision was not welcomed by U.S. President Donald Trump, who earlier in the day criticized Fed Chairman Jerome Powell as “stupid” for refusing to cut rates. Trump used his Truth Social account to draw attention to fresh employment data released by the White House. According to Trump, blue-collar workers saw a 1.7% real wage increase over the first five months of his presidency, marking the strongest such growth in nearly six decades. “Wow!!! U.S. Wage Growth BEST IN 60 YEARS!” he posted, emphasizing his administration’s economic accomplishments.

Bitcoin's price edged up a modest 0.42% to $104,364.49 following the Fed’s rate announcement. Prior to recent geopolitical tensions, BTC was on track to reach $110,000. However, a surprise military strike by Israel on Iran triggered a 2.8% drop in the cryptocurrency’s value, from which it has yet to recover. The Fed’s neutral stance did little to restore bullish momentum. Week-on-week, bitcoin remains down 4.25%, mirroring broader caution in the crypto market amid geopolitical and economic crosscurrents.

Trading data showed a noticeable dip in market activity. Bitcoin’s 24-hour volume dropped nearly 18% to $46.93 billion, indicating traders may be sidelining themselves amid macro uncertainty. Meanwhile, total crypto market capitalization rose slightly by 0.61% to $2.07 trillion. Bitcoin’s market dominance climbed to 64.90%, a 0.13% increase, suggesting that the flagship cryptocurrency is performing more steadily than many altcoins during the current market lull.

In derivatives markets, futures open interest declined 2.54% to $69.13 billion, reflecting reduced confidence among leveraged investors. The drop highlights a cautious tone prevailing among traders who remain sensitive to both monetary policy developments and global tensions. With the Fed adopting a wait-and-see approach, bitcoin’s next major move may hinge on broader economic signals or geopolitical shifts.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.