Bitcoin price rises after Fed keeps interest rates unchanged
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Meanwhile, a new White House report on digital assets left unanswered questions about the administration’s long-promised Bitcoin Strategic Reserve.
The leading cryptocurrency rose 1% over the past 24 hours, holding above the $118,000 (£89,026) level. Broader market sentiment also turned positive, with Dow Futures, S&P 500 Futures, and Nasdaq Futures climbing 0.29%, 0.9%, and 1.31%, respectively, in pre-market trading.
Read more: Crypto live prices
Altcoins showed mixed performance following the Fed’s decision. Ethereum (ETH-USD) gained 1.1%, while Solana slipped 0.4% over the same period.
At Wednesday’s Federal Open Market Committee (FOMC) meeting, the central bank left the benchmark federal funds rate unchanged at 4.25% to 4.5%. Fed chair Jerome Powell struck a cautious tone, reiterating that future decisions will depend on incoming data, particularly as new tariffs introduced by US president Donald Trump’s administration begin to filter through the economy.
September rate cut less likely
The likelihood of a September rate cut dropped sharply following Powell’s remarks. According to market data, the probability of a cut at the next FOMC meeting fell to 40%, down from 63% prior to the statement.
Powell said increased tariffs are beginning to show up in consumer prices for some categories of goods, but he did not commit to any action for September. Instead, he noted that the Fed will assess conditions over the next two months.
Read more: Why bitcoin and gold are rallying as bond yields hit 30-year highs
Historically, rate cuts have been a bullish signal for crypto markets, as lower interest rates reduce the appeal of traditional savings and push investors toward riskier assets like bitcoin (BTC-USD) and altcoins.
Bitcoin USD (BTC-USD)
Not all market participants were convinced by the Fed’s stance. Navellier & Associates chairman Louis Navellier issued a critique of the central bank’s approach. “The Fed are saying that the economy is weakened, but it’s not enough to cut rates yet,” he wrote in an investor report. “They are arguing that labour is very strong, even though a lot of that was seasonal adjustments.”
Navellier pointed to persistent disinflationary pressures, including deflation in China, global economic weakness, and the buildup of inventories in anticipation of tariffs. “The Fed is looking for an inflation bogeyman that doesn’t exist,” he added. “To Jerome Powell’s credit, he did say any inflation from tariffs could be a one-time thing that would not be repeated. I’m glad he said that.”
Navellier went further, calling for an aggressive series of cuts beginning in September. “In all candour, the Fed has to cut six times. They have to start cutting in September, cut again in December, and cut another four times next year. The federal funds rate has to get
The White House crypto report
Also on Wednesday, the Trump administration released its most detailed cryptocurrency policy document to date, a 163-page report from the White House Working Group on Digital Assets. The report outlines the government’s evolving regulatory framework for digital assets, covering areas such as banking infrastructure, anti-money laundering standards, and cross-border crypto activity.
However, the highly anticipated Bitcoin Strategic Reserve received only a brief mention. The proposed initiative, intended to create a national bitcoin stockpile, was referenced just once. Despite growing interest from the crypto industry, no substantive details were offered.
However, senior administration officials said infrastructure for the reserve is underway and that more information would be released soon.
