On Thursday, May 1, 2025, the U.S. Federal Reserve decided to keep the key interest rate unchanged, leaving it at 4.25%–4.50%. This decision, in line with consensus forecasts, was expected by most market participants, but its impact on the cryptocurrency sector proved mixed.
Reaction of Bitcoin and Altcoins
Immediately after the announcement by Fed Chairman Jerome Powell, Bitcoin (BTC) showed short-term volatility, fluctuating in the range of $84,500–$85,200. Within an hour of the press conference, the asset corrected by 1.2%, returning to the $84,800 mark. Altcoins such as Ethereum (ETH) and Solana (SOL) showed a more pronounced decline — by 2.1% and 3.4% respectively, indicating increased sensitivity of high-risk assets to macroeconomic signals.
Key Factors Behind the Fed's Decision
Powell confirmed that inflationary pressures remain above the 2% target level, while the labor market remains resilient. At the same time, he noted that economic uncertainty related to trade tariffs and global supply chains continues to influence forecasts. Markets assessed his rhetoric as "dovish" with elements of caution, leading to a 5-basis-point decline in the yield of 10-year U.S. Treasury bonds to 4.32%.
My Professional Opinion
From my perspective, keeping the rate unchanged is a temporary respite for the crypto market, not a signal for a reversal. The absence of aggressive monetary tightening provides an opportunity for sideways movement in the coming weeks, but the fundamental risk of recession and further inflation growth remains high. Investors should closely monitor employment data (NFP) in May — any surprise could trigger a sharp downward correction.