Fed holds interest rates steady, crypto markets shrug as focus shifts to new chairman
The US Federal Reserve (Fed) kept the benchmark interest rate unchanged at its meeting on Wednesday, holding it in the range of 5% to 5.25%. This decision was expected by the markets and did not cause a significant reaction, including in the cryptocurrency market.
Despite the lack of changes in the key rate, the attention of investors and experts has shifted to other factors that may influence the Fed's further monetary policy. The focus is on the leadership issues at the Fed, as well as the political signals that will shape the regulator's course up to 2026.
Analysts note that at the moment, the markets are focused on expectations regarding the further actions of the new Fed chairman, John Williams, who will replace Jerome Powell in this position next year. Investors are also closely watching the political situation, as the outcome of the 2024 presidential election could significantly affect the Fed's monetary policy in the medium term.
As for the reaction of the cryptocurrency market, it responded to the Fed's decision with a slight decline in the prices of major cryptocurrencies. Bitcoin and Ethereum lost about 1% of their value after the regulator's decision was announced. However, experts do not expect a significant negative impact of the interest rate hike on the cryptocurrency sector, as investors are focused on longer-term factors.
Conclusion
The decision of the US Federal Reserve did not significantly affect the cryptocurrency markets, as investors have shifted their attention to other factors, such as the change in the leadership of the regulator and possible political changes that could determine monetary policy in the medium term. Despite a short-term decline in the prices of major cryptocurrencies, experts do not expect a serious negative impact of the interest rate hike on the cryptocurrency sector.