- The latest FOMC meeting ended up halting the further rate cuts that raised the confidence among the crypto investors
- The overall crypto markets surged by 3%, hinting towards the resurgence of a healthy ascending trend
The fresh inflation rates are out and surprisingly remain unchanged, which hints towards the FED implementing a ‘wait-and-see’ approach. It was the first FOMC meeting under the Trump administration and hence the decision to halt the further rate cuts was voted on unanimously to monitor inflation’s trajectory and await clarity on Trump’s trade and immigration plans. This pause has come after three consecutive rate cuts, which may remain unchanged in the months to come.
Meanwhile, the Fed chair softens his stance on cryptos as he states that banks are ready to serve the crypto customers but more regulatory clarity is required.
“We are not against innovation and banks interacting with the crypto sector,” Powell said.
“It would be helpful if there were a greater regulatory apparatus around crypto; that would be a very constructive thing for Congress to do,” he added
The chairman made it clear that the FED policies are ‘well-positioned.’ for now and hence the banks are not in a hurry to cut rates or make any adjustments. However, the U.S. central banks stick to their commitment to achieving 2% inflation, which will not be the focus of the review.
Crypto Markets Experienced a Small Relief
Ever since the DeepSeek launch, the crypto markets have been under tremendous pressure as the bears have held a tight grip over the rally. Most of the cryptos plunged hard and marked fresh bottoms for the year. Meanwhile, the markets began to climb slowly ahead of the meeting and with the release of the fresh inflation rates, the cryptos surged by nearly 3% to 4%.
Bitcoin price climbed above $105K, whereas the broader crypto markets continue to juggle around their respective resistance levels. Ethereum price trades above $3100, and XRP price is above $3.1, while Solana’s price climbed above the crucial range at $240. Meanwhile, Cardano remains consolidated below $1 and DOGE price also failed to achieve $0.34 but managed to halt the descending trend.
The overall crypto markets have reacted positively to the fresh inflation rate, which remains steady but if it continues to do so, it may not be good for a healthy rally, as it could be a short-term jump, trapping the bulls.
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