The US Federal Reserve maintained the standard interest rate at 4.25% to 4.50% in the meeting on 07/05/2025, citing the need for more economic clarity before adjusting policy.
This decision aligns with market expectations and demonstrates a waiting approach as inflation stabilizes and growth slows down.
Crypto market liquidation conditions are likely to remain't to remain unchanged
The cryptoasset market reacted calmly to this announcement, with Bitcoin trading near $96,300 and Ethereum maintaining $1,800 at the time of the decision.
Traders are currently focusing on Fed Chairman Jerome Powell's press conference to seek any signs of future interest p interest rate cuts.
The central bank's statement acknowledrecentges economic weakness, including a 0.3% GDP decline in the first quarter, but points out that the labor market remains strong and inflation is approaching the 2% target.
This balanced perspective suggests the Fed is unlikely to tighten further unless inflation rises again.
For cryptcryptoasset investors, stable interest rates help maintain current market conditions. Risk acceptance may remain steady, especially if Powell indicates potential interest rate cuts by the end of this year. Low interest rates typically rates typically support cryptoassets by weakening the dollar and improving liquidation for alternative investments.
Encoded US Treasury bonds and interest and stablecoins with interest still topics, as on-chain liquidation continues shifting towards real asset platforms offering yields tracking traditional interest rates.
A prolonged Fed pause could maintain this trend while keeping institutional capital engaged in the cryptoasset space.
The market is now awaiting upcoming CPI and employment data to assess the Fed's next move. Any confirmation of inflation decline or economic weakness could reinforce reasons for interest rate cuts in the second half of 2025—potentially benefiting cryptoassets.
