Crypto Market Extends Gains After Fed Holds Rates Steady

The cryptocurrency market continued to rally on Thursday, a day after the Federal Reserve left U.S. interest rates unchanged.

Bitcoin (BTC) is up 2.3% in the past 24 hours, reaching $105,500. Meanwhile, Ethereum (ETH) rose 5% to $3,270, XRP gained 2.6% to $3.13, and Solana (SOL) surged 5% to $242. The overall cryptocurrency market capitalization grew by 2.7% to $3.74 trillion, according to CoinGecko.

In the past 24 hours, 94,176 traders were liquidated for a total of $279 million, according to CoinGlass data. ETH recorded $72 million, while BTC accounted for $67 million.

Powell Calms Markets

Experts said the recent rally follows a period of uncertainty as investors awaited signals from the Fed’s monetary policy. The central bank's decision to keep interest rates unchanged reassured the broader markets, preventing further volatility.

“The US Fed kept interest rates paused, and that helped boost crypto’s stability, as it was shaken earlier in the week by an unsureness of the FOMC’s next move,” Marcus Sturdivant Sr., a former financial advisor at Tristate Financial Advisors, told The Defiant.

He added that President Donald Trump’s TruthFi announcement yesterday “further reinforced the government's evolving view on crypto,” which could boost the crypto market’s growth.

TruthFi is a new fintech venture specializing in cryptocurrency and digital assets launched by Trump Media & Technology Group (TMTG), the parent company of Truth Social.

Fed Decision

On Wednesday, the Federal Reserve announced that interest rates will remain unchanged, keeping the target range at 4.25% to 4.5%.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the Federal Open Market Committee (FOMC) statement reads, noting that inflation remains somewhat elevated.

The Fed reiterated that it will closely monitor incoming economic data to evaluate the need for policy adjustments. It also emphasized that decisions will be based on various factors, including labor market conditions, inflation pressures and expectations, and financial and international developments.