Crypto Markets Eke Out Weekly Gain Following Fed’s Rate Decision

The cryptocurrency market remained relatively stable on Friday, recording only slight losses as investors reacted to the Federal Reserve's decision, announced two days earlier, to keep interest rates unchanged.

Bitcoin (BTC) is down 2% in the past 24 hours, hovering around $103,000. Ethereum (ETH) rose 2% to $3,330. Meanwhile, XRP dropped 2%, and Solana (SOL) dipped 3% to $232. The overall cryptocurrency market capitalization dipped by 2% to $3.7 trillion, according to CoinGecko.

In the past 24 hours, a total of $252 million in liquidations occurred across 102,774 traders, according to CoinGlass. ETH recorded the most in liquidations (around $58 million), while BTC accounted for around $55 million.

Stagnant Market

Experts suggest the market's stagnancy is typical when there is a lack of catalysts or when investors are awaiting upcoming events.

"We're seeing similar muted activity across equity markets this morning,” said Matt Kaufman, the SVP and Head of ETFs at global investment firm Calamos. “If there were to be a reason for muted volatility today, it might be that the market is awaiting the February 1 deadline for President Trump to impose tariffs on China and others.”

John Glover, the Chief Investment Officer of Ledn, also cited President Donald Trump as a reason for the lack of volatility.

“The market was looking for confirmation that Trump would put into action the multitude of promises he made regarding digital assets, and particularly BTC, during the lead-up to his taking office,” Glover said. “His actions have so far seemed to follow his words, and the market remains bid as a result.”

Glover acknowledged that some, like Arthur Hayes, are starting to voice concerns that the bull market is ripe for a correction. However, he noted that the current price action doesn’t yet signal an imminent correction.

“I continue to look for a further rally to the $126K region before a meaningful correction takes place,” he said. “For now, I plan to hold on and look to bank some profits at the completion of the rally, so I have some dry powder on the correction."

The market’s stagnancy follows the Federal Reserve’s recent announcement that interest rates will remain unchanged, keeping the target range between 4.25% and 4.5%.