{"id":33248,"date":"2026-10-28T19:55:36","date_gmt":"2026-10-28T19:55:36","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/10\/28\/fed-holds-rates-impact-crypto\/"},"modified":"2026-10-28T19:55:43","modified_gmt":"2026-10-28T19:55:43","slug":"fed-holds-rates-impact-crypto","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/fed-holds-rates-impact-crypto\/","title":{"rendered":"Fed Holds Rates at 3.75%-4.00%: What It Really Means for Crypto"},"content":{"rendered":"\n

The US Federal Reserve<\/strong> has delivered its verdict: interest rates remain unchanged in the 3.75%-4.00%<\/strong> range. The decision itself was widely expected, but the nuances behind it immediately rattled financial markets<\/strong> and the crypto space alike.<\/p>\n\n\n\n

Two FOMC<\/strong> members voted in favour of an additional rate hike \u2014 a signal of internal divergence that is rarely without consequence. And the December meeting remains wide open to all outcomes.<\/p>\n\n\n\n

Between an apparent status quo and underlying tensions, crypto investors are parsing every word from Jerome Powell<\/strong> in an attempt to anticipate the market’s next move.<\/p>\n\n\n\n

FOMC: A Deceptive Pause \u2014 Two Dissenters Shake the Markets<\/h2>\n\n\n\n

Holding rates steady does not necessarily mean reassuring the markets. At this FOMC<\/strong> meeting, two committee members voted for an immediate rate hike<\/strong>, breaking with the majority position. This kind of internal dissent sends a clear signal: the Fed<\/strong> is not unanimously convinced that inflation<\/strong> is under control.<\/p>\n\n\n\n

For crypto markets, this backdrop creates sentiment-driven volatility. Bitcoin<\/a><\/strong> and altcoins have been operating for several months in an environment of partial correlation with traditional risk assets<\/strong>. Any hawkish<\/strong> rhetoric \u2014 even from a minority \u2014 weighs on the risk appetite<\/strong> of institutional investors, who are constantly arbitraging between high-yield bonds and speculative assets like cryptocurrencies<\/strong>.<\/p>\n\n\n\n

The Fed Funds Futures<\/strong> market rapidly repriced its probabilities following the announcement. The December window remains open, and it is precisely this uncertainty that is generating selling pressure on high-beta assets<\/strong> \u2014 a category in which Bitcoin<\/strong> firmly sits.<\/p>\n\n\n\n

\"Bitcoin<\/figure>\n\n\n\n

Bitcoin and Crypto Under Pressure: What Monetary Policy Really Changes<\/h2>\n\n\n\n

The relationship between the Fed<\/strong>‘s monetary policy<\/a><\/strong> and cryptocurrency<\/strong> performance is now well documented. In a high-rate environment, the opportunity cost<\/strong> of holding non-yielding assets like Bitcoin<\/strong> rises mechanically. Institutional investors<\/strong>, who have represented a growing share of the market since the approval of spot Bitcoin ETFs<\/strong> in the United States, are particularly sensitive to this trade-off.<\/p>\n\n\n\n

In practical terms, as long as rates remain above 3.75%<\/strong>, US Treasury bonds<\/strong> offer an attractive risk-free yield. This environment compresses marginal demand for Bitcoin<\/strong> and altcoins, even as the post-halving<\/strong> supply dynamic continues to provide structural long-term support for the BTC price.<\/p>\n\n\n\n

On-chain data<\/strong>, however, points to notable resilience: inflows into spot Bitcoin ETFs<\/a><\/strong> remain positive, and active addresses on the Bitcoin<\/strong> network are holding at elevated levels. The market is absorbing macro pressure without a mass capitulation \u2014 a sign that underlying sentiment remains constructive despite the monetary headwinds.<\/p>\n\n\n\n

December in the Crosshairs: The Next FOMC Could Change Everything<\/h2>\n\n\n\n

The next FOMC<\/strong> meeting in December is shaping up to be a major catalyst<\/strong> for crypto markets. If inflation<\/strong> data (CPI<\/strong>, PCE<\/strong>) released between now and then comes in hotter than expected, the probability of another rate hike will rise significantly \u2014 and with it, downside pressure on Bitcoin<\/a><\/strong> and risk assets<\/a><\/strong> more broadly.<\/p>\n\n\n\n

Conversely, a confirmed slowdown in inflation<\/strong> could pave the way for a rhetorical pivot<\/strong> from the Fed<\/strong>, or even a first rate cut in the first half of 2025. That scenario would represent a powerful bullish catalyst<\/strong> for the entire crypto market, reducing the opportunity cost<\/strong> of holding digital assets and reigniting risk appetite<\/strong> across the board.<\/p>\n\n\n\n

Traders are already positioning their strategies around this potential pivot. In derivatives markets<\/strong>, Bitcoin options<\/a><\/strong> expiring in December and January are concentrating growing open interest<\/strong> volumes \u2014 clear evidence that the market is pricing in a strong directional move in the weeks ahead. Implied volatility<\/strong> remains elevated, and every macro data release is now an event to watch very closely.<\/p>\n\n\n\n

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