Bitcoin, Ethereum, XRP Surge As Fed Holds Interest Rates Steady

The Federal Reserve kept its benchmark interest rate steady for a second consecutive meeting, signaling concerns about slower economic growth and persistent inflation pressures. While the central bank opted not to raise borrowing costs further, it also adjusted its balance sheet policy, a move that drew internal dissent.

Amid the announcement, the cryptocurrency market has shown renewed optimism as prices of major cryptocurrencies surged. At the time of publication, Bitcoin was up 4% in the past day at $84K. Ethereum has also gained 8%, trading at $2,034, while XRP is leading the surge after soaring 10% to $2.47 in the same period.

Economic Projections of Federal Reserve Board Members and Federal Reserve Bank Presidents: https://t.co/ncljvezHDI

Crypto market Reacts

Investors will be scrutinizing the central bank’s messaging for any hints about future monetary policy shifts. In addition to interest rates, the Fed’s new economic projections will shed light on GDP growth, unemployment, and inflation expectations. In December, the central bank forecast inflation at 2.5% for 2025 and GDP growth at 2.1%. Given recent economic data, there is speculation that the Fed may raise its inflation outlook while lowering its growth expectations.

With uncertainty surrounding economic growth, inflation, and future rate moves, the FOMC meeting will play a pivotal role in shaping investor sentiment. For crypto traders, the short-term volatility might be significant, but in the broader context of digital asset markets, it remains business as usual.

Expect ongoing updates as this story evolves.