FameEX Hot Topics | Bitcoin Holds Firm as Fed Keeps Rates Steady

The U.S. Federal Reserve left interest rates unchanged for the fourth consecutive time on Wednesday, holding the federal funds rate steady at 4.25%–4.50%. The decision came as no surprise to markets, as the central bank cited ongoing inflation pressures and lingering uncertainty about the economic outlook. While traditional markets responded positively—S&P 500, Nasdaq, and Dow Jones all ended in the green—Bitcoin remained mostly flat, reflecting a muted reaction from crypto investors.

The rate hold, however, drew sharp criticism from U.S. President Donald Trump, who earlier in the day lashed out at Fed Chairman Jerome Powell, calling him “stupid” for not initiating a rate cut. Trump used his Truth Social platform to highlight wage growth statistics from the White House, claiming blue-collar workers had experienced a 1.7% increase in real wages during the first five months of his presidency—the highest such jump in nearly 60 years. “Wow!!! U.S. Wage Growth BEST IN 60 YEARS!” Trump wrote, clearly positioning economic gains as a highlight of his administration.

Bitcoin showed little movement following the Fed’s announcement, inching up just 0.42% to $104,364.49. The cryptocurrency had recently been on a trajectory toward $110,000 before geopolitical tensions—specifically Israel’s surprise attack on Iran—triggered a sharp 2.8% decline. Since then, BTC has struggled to regain upward momentum, and the Fed’s decision on Wednesday failed to spark any significant price reaction. Over the past week, Bitcoin remains down 4.25%, reflecting the broader risk-off sentiment in crypto markets.

Market data reveals a cooling in trading activity. Bitcoin’s 24-hour trading volume dropped nearly 18% to $46.93 billion, indicating a pause in buying and selling enthusiasm. Despite this, the overall market capitalization of cryptocurrencies edged up slightly by 0.61% to $2.07 trillion. Bitcoin’s dominance also rose modestly to 64.90%, suggesting that while altcoins may be underperforming, BTC is holding its ground better than the broader crypto sector.

In the derivatives market, futures open interest fell 2.54% to $69.13 billion, signaling declining confidence among leveraged traders. This drop further underscores the cautious stance taken by market participants amid macro uncertainty and geopolitical instability. As the Fed maintains its wait-and-see approach, traders and analysts alike continue to monitor economic indicators and global events for clues on bitcoin’s next significant move.

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