FOMC meeting impact on crypto markets: Fed holds rates at 3.75%-4.00%

The much awaited Fed rate decision is out, and it stayed untouched.

The decision leaves rates unchanged ahead of next week’s midterm elections, with investors now looking to December for the Fed’s next move.

Fed holds rates steady

The vote was 10-2. The Fed kept its benchmark rate in the 3.75% to 4.00% range, one month after raising it by a quarter point.

Not everyone agrees with the call, though.

Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack both voted for another quarter-point hike. For Hammack, it’s become a habit, having dissented for the same reason in July.

Cook’s vote stands out a bit more, since President Trump is currently trying to remove her from the Fed.

The growth was called “strong,” a step up from “solid” in September. Inflation was still called elevated, though, and the door could be more open for hikes if needed.

Lastly, they confidently noted,

The Committee will deliver price stability.

FOMC meeting: Impact on crypto markets?

What matters for crypto is the tone of Warsh’s press conference.

When borrowing stays expensive, cash and short-term treasuries start looking pretty good next to something as jumpy as Bitcoin [BTC].

Traders also get less keen on leverage.

The decision itself was widely expected, leaving investors focused on Fed Chair Kevin Warsh’s comments about December.

A signal that rates could remain unchanged for longer might ease pressure on Bitcoin and other cryptocurrencies. But if Warsh suggests another increase is likely, higher bond yields and a stronger dollar could weigh on riskier assets.

Neither outcome guarantees a particular move in crypto. Traders will also be watching inflation data and the broader economic outlook.

Markets already expect more hikes starting in December and running into 2027. And even then, a nicer tone isn’t automatically good news.

If it’s because the economy looks weak, investors may still stay away from risk.

Final Summary

• The Fed held rates at 3.75%-4.00% in a 10-2 vote.
• Crypto’s next move will depend on Fed Chair Kevin Warsh’s tone.