Key Takeaways
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The Fed held rates at 3.50%-3.75% in a 9-3 vote, with three dissents favoring a hike.
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Core inflation rose to 3.4% in May, partly driven by oil price swings.
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Bitcoin and Ethereum both slipped after the decision, alongside $401 million in liquidations.
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Markets now expect a possible rate hike in September.
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Tighter monetary policy could weigh on crypto presales and other speculative assets in the near term.
The FED meeting on July 29 ended with a split decision. The Federal Reserve voted 9-3 to hold interest rates at 3.50% to 3.75%. That is the fifth time in a row the Fed has left rates unchanged. But three officials wanted a hike instead, and that surprised a lot of traders.
Bitcoin was trading near $64,300 before the announcement. After the news, prices wobbled. Ethereum slipped too, trading around $1,882, down close to 2% over 24 hours. The mixed reaction shows how nervous crypto markets still are around Fed decisions.
What Happened at the FED Meeting?
Fed Chair Kevin Warsh led his first major test in the role. The committee kept rates steady, but three regional bank presidents pushed back hard. Beth Hammack of Cleveland, Neel Kashkari of Minneapolis, and Lorie Logan of Dallas all voted for a quarter-point hike instead.
That kind of dissent is rare. It signals that some Fed officials think inflation is still too hot to ignore.
Why Is Inflation Still a Problem?
Core inflation, measured by the PCE index, rose to 3.4% in May, up from 3.0% back in December. Oil prices played a big role. Crude oil jumped from around $57 a barrel early in the year to a peak of $113 in April, before settling back near $84 this week.
Higher energy costs tend to push prices up across the board. That makes the Fed's job harder, since it wants to lower inflation without slowing the economy too much.
How Did Crypto Markets React?
Crypto had a rough day. As per CoinGlass Data, total liquidations hit $285.96 million in 24 hours, based on CoinGlass data, which affected more than 93,065 traders. Futures volume rose 65.75 billion, showing traders were placing bigger bets even as prices dipped.
Bitcoin's market cap stood near $1.29 trillion, with daily trading volume close to $31.91 billion.
FED Meeting Impact: Quick Stats
|
Metric |
Value |
|
Fed Funds Rate |
3.50%–3.75% |
|
FOMC Vote |
9-3 (hold) |
|
Core PCE Inflation (May 2026) |
3.4% |
|
Bitcoin Price (post-decision) |
~$63,900–$64,300 |
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Ethereum Price (post-decision) |
~$1,882 |
|
24-Hour Crypto Liquidations |
$285.96 million |
|
Bitcoin Market Cap |
$1.29 trillion |
What Comes Next for the FED Meeting Outlook?
Markets now widely expect a rate hike in September. Investors are pricing in one to two increases by the end of 2026. The Jackson Hole Symposium in late August will likely offer more clues, since this year's theme touches on financial innovation and payments.
For crypto traders, that means more uncertainty ahead. Tighter policy usually means less cash flowing into riskier assets like Bitcoin and altcoins. Some analysts think this could slow momentum in areas like crypto presales, where confidence often depends on broader market liquidity.
